gRupa azoTy inTegRaTed RepoRT | 2013 gR u pa a zo T y in T eg

Transcription

report
powering Creation
gRupa azoTy inTegRaTed RepoRT | 2013
t
The market is an open space
– but only for those, who
themselves can open
to the opportunities it provides.
We’ve opened up to what is
most valuable in Polish chemistry
and merged these assets into
one entity. Into Grupa Azoty.
We’ve opened up to the world
and found new markets and
new sources of raw materials.
We are always open to the future.
We free imagination,
we calculate and plan.
Creation is work that will
never end. Fortunately.
Grupa Azoty integrated report | 2013
Report was prepared in accordance with GRI G4 (core)
Report was verified by a third-party external verification agency.
2
integrated report | 2013
POWERIN G CREATION
G4-1
G4-2
Ladies and Gentlemen,
It is with great pleasure that I
present to you the first integrated
annual report of the Grupa Azoty
Group, covering the financial year
2013. In line with an internationallyrecognised approach, the report
offers a systematic perspective
on our general economic, social and
environmental performance, rather
than just the financial results.
This report is not only among
Poland’s first integrated reports,
but also one of the first on the market
to implement the latest version
of the GRI Sustainability Reporting
Guidelines – the G4. I strongly believe
that this reporting framework
ensures an accurate and reliable
presentation of a business enterprise.
I also think that this comprehensive
approach will be well received by the
business environment, including
our shareholders. In my opinion,
presenting a full picture of our
performance, rather than just the
financial results, will enable the
capital market to better understand
the Group’s day-to-day operations
and recognise its potential for longterm growth. A reporting approach
that integrates social, environmental
and economic perspectives with
financial data has been developed
to respond to the public’s
expectations towards business.
By catering to these expectations
today, we set new standards.
Last year ushered in a host
of enormous challenges for
the Group, spurring the creation
of entirely new value in the Polish
economy. We have succeeded
in consolidating 30 companies under
a single brand, including Poland’s
four largest chemical plants:
in Tarnów, Kędzierzyn-Koźle,
Police and Puławy. We have
thus accumulated a wealth
of complementary and unique
capabilities in the chemical industry
– the know-how and experience
in large-volume chemical production,
as well as the many years of research
and development work. We can build
on this to continue innovating and
exploring for efficient solutions, which
is essential in the context of global
social and environmental challenges.
The Grupa Azoty Group leverages
its combined production capacities
and operates a uniform management
framework relying on process
leaders, defined decision paths
and decision-making transparency.
The consolidation, which was carried
out so as to preserve each company’s
individual character and place in the
local community, allows the entire
organisation to operate as if it were
a single company. Critical to successful
integration are respect, people and
common values. The respect for local
heritage and traditions, something
all our employees have in common,
is the source of our unique character
and creative power. As the shared
vision and sense of unity binding our
team are the key source of synergy,
we are working hard towards creating
a robust organisational culture across
the Group.
For us, responsibility is a commitment
to finding solutions to the problems
of today’s world, including those
facing the Polish economy.
This commitment consists in limiting
our environmental impact, but also
in discovering new opportunities,
innovations and unique expertise,
as well as in creating prime quality
products, safe to the environment
and valuable to society. Rather than
make empty declarations about
sustainable growth, the chemical
industry should pursue concrete
solutions to make growth sustainable.
The Grupa Azoty Group wants to play
a part in developing such solutions.
Even today we pioneer changes which
may dramatically alter our current
perception of fertilizers. We set
a course for smart solutions, and we
find them. We understand the threats,
but we can also see the opportunities
and capture them successfully. In the
past, mineral fertilizers proved
instrumental in increasing the food
supply, thus dispelling the shadow
of the Malthusian catastrophe, but
today we can see with growing clarity
that fertilizers must also be safe to 
the environment. The world needs
safe and effective fertilizers, and we
are here to offer them – it is our duty
as the market’s leader.
At the Grupa Azoty Group,
we deliver solutions offering
tangible social and environmental
value across all of our operating
areas. As shown by numerous
examples, business, including the
chemical industry, opens the door
to global sustainable development.
The Grupa Azoty Group, its creative
workforce and stakeholders,
as integrated by the Group,
are all part of this new solution.
The awareness that we can have
a real impact on the world fuels
our passion and creative power.
We are thus building sustainable
value to the benefit of our immediate
environment, as well as, in the
long-term perspective, for the
shareholders who have chosen
to invest in Grupa Azoty.
As a team, we shall not betray
the confidence which our
shareholders have placed in us.
Have a good read,
Paweł Jarczewski
President of the Management Board
Grupa Azoty S.A.
3
After a time
of growth
comes a time
of maturity
– a time for harvest.
A time
for taking stock.
Sometimes figures
can bring as much
joy as ripe fruit.
4
G r u pa A zot y i n ke y fi g u r e s
Revenue
PLN 9 821m
EBIT
PLN 703m
EBITDA
PLN 1 253m
Capital expenditure
PLN 670m
Net profit
PLN 714m
Equity
PLN 6 271m
Total assets
PLN 9 962m
Headcount at end of year
13 879
Energy consumption
47 975 894 GJ
Water consumption
275 810 550 m3
5
6
1
Introduction
7
Architecture is a dialogue
between matter
and imagination.
It's the art of harmony.
Much like in business
– a company's well-crafted
architecture brings safety
and lets various assets be
used to achieve a common,
daring goal.
8
G r u pa A zot y G ro u p ’ s profi l e
G4-4
G4-12
The Grupa Azoty Group has
consolidated several dozen
companies under a single
brand, including Poland’s
largest chemical plants in
Tarnów, Kędzierzyn-Koźle,
Police and Puławy,
accumulating a vast potential
of complementary capabilities.
The Group’s business is divided
into the following segments:
■■
Agro Fertilizers,
■■
Plastics,
■■
Chemicals,
■■
Energy,
■■
Other Activities.
The Grupa Azoty Group is currently
the leader of the Polish chemical
industry and a significant player
in the EU market.
Its products find practical applications
in virtually all areas of the economy,
with significant value added in social
terms. They open the field for new
technologies and improve the quality
of everyday life. The Group’s products
are widely applied in agriculture,
automotive industry, construction,
electrical engineering, pharmacy,
household products, food, textile and
cosmetic industries, wood processing
industry, paper manufacture, mining,
printing, furniture, machine-building
industry, sports equipment, and many
other areas. They are indispensable
for the manufacture of laminated
decorative materials, wood-based
boards, glues, paints and varnishes.
Without mineral fertilizers, including
those produced by the Grupa Azoty
Group, agricultural yield would not
be sufficient to feed the world, and
it would not be possible to obtain
many medicines and other specific
products, such as de-icing blends
for aircraft runways, antiseptic
containers or fuel additives necessary
for exhaust emissions treatment.
Without such products, today’s
food industry and medicine
would certainly not be the same.
9
As the industry leader, the Grupa
Azoty Group strives to play an active
part in shaping the future and setting
the highest industry standards.
The Group pursues these objectives
through membership in numerous
business and trade organisations,
which it sees as a platform for
dialogue with the market and
its environment.
Through synergies, the combined
knowledge and experience of
the Grupa Azoty Group’s R&D
laboratories and its significant
production capacities can foster
unprecedented innovation and
efficiency. The Grupa Azoty Group is
a network of equity-linked companies
which, operating as a single entity,
can now fully leverage their market
potential.
G r u pa A zot y G ROUP ' S STRUCTURE
Grupa Azoty S.A.
Grupa Azoty
ATT Polymers GmbH
100%
Grupa Azoty
„KOLTAR” Sp. z o.o.
100%
Grupa Azoty
Zakłady Azotowe
Kędzierzyn S.A.
93,48%
Grupa Azoty
Zakłady Azotowe
„Puławy” S.A.
95,98%
Grupa Azoty
Zakłady Chemiczne
„POLICE” S.A.
66%
Hotel CENTRALNY Sp. z o.o.
in liquidation
100%
„Agrochem” Sp. z o.o.
100%
„Automatika” Usługi
Kontrolno-Pomiarowe Sp. z o.o.
100%
ZAKSA S.A.
91,67% ***
„Agrochem Puławy” Sp. z o.o.
100%
„KONCEPT” Sp. z o.o.
100%
CTL CHEMKOL Sp. z o.o.
49%
SCF Natural Sp. z o.o.
99,99%
REMECH Grupa InwestycyjnoRemontowa Sp. z o.o.
100%
D.W. „Jawor” Sp. z o.o.
in liquidation 99,96% 1
„TRANSTECH”
Usługi SprzetowoTransportowe Sp. z o.o.
100%
GZNF „Fosfory” Sp. z o.o.
98,43%
„Supra” Agrochemia Sp. z o.o.
in liquidation 3
Przedsiębiorstwo Żywienia
Zbiorowego i Usług
„STO-ZAP” Sp. z o.o.
96,15% 12
Zarzad Portu Morskiego
Police Sp. z o.o.
99,97%
REMZAP Sp. z o.o
94,61%
African Investment Group S.A.
55%
Zakład Opieki Zdrowotnej
„Medical” Sp. z o.o.
91,41%
INFRAPARK Police S.A.
in liquidation
54,43%
Zakłady Azotowe Chorzów S.A.
85%
„Budchem” Sp. z o.o.
in liquidation
48,96%
PROZAP Sp. z o.o.
84,69%
„KEMIPOL” Sp. z o.o.
33,99%
Grupa Azoty
Polskie Konsorcjum
Chemiczne Sp. z o.o.
36,73% *
Bałtycka Baza Masowa Sp. z o.o.
50%
Grupa Azoty
Polskie Konsorcjum
Chemiczne Sp. z o.o.
63,27%*
Kopalnie i Zakłady
Chemiczne Siarki
„Siarkopol” S.A.
85% 5
Grupa Azoty
Automatyka Sp. z o.o.
79,69%
Grupa Azoty
Jednostka Ratownictwa
Chemicznego Sp. z o.o.
100% 4
Regionalne Laboratorium
Oceny Mleka Sp. z o.o.
100%
Konsorcjum
EKO TECHNOLOGIES
60%
EKOTAR Sp. z o.o.
12%***
Grupa Azoty
PROREM Sp. z o.o.
100%
EKOTAR Sp. z o.o.
12%***
„NAVITRANS”
Sp. z o.o.
26,45%****
„NAVITRANS” Sp. z o.o.
26,45%****
Elektrownia Puławy Sp. z o.o.
50%
Changes in Group structure in period 1st January-17th July 2014:
1) Dom Wczasowy Jawor Sp. z o.o. w likwidacji (in liquidation) − the company was
deleted from the National Court Register on June 9th 2014.
2) Przedsiębiorstwo Żywienia Zbiorowego i Usług STO-ZAP Sp. z o.o. – the company’s
name was changed to STO - ZAP Sp. z o.o. as of February 27th 2014.
3) Supra Agrochemia Sp. z o.o. w likwidacji (in liquidation) − on December 16th 2013,
the Extraordinary General Meeting of Supra Agrochemia Sp. z o. o. w likwidacji
(in liquidation) resolved to revoke the resolution on the company’s liquidation
with effect from January 1st 2014; an entry changing the company name (to Supra
Agrochemia Sp. z o. o. ) was made in the National Court Register on January 27th 2014.
4) Regionalne Laboratorium Oceny Mleka Sp. z o.o. – the company was deleted from
the National Court Register on March 14th 2014 in connection with its merger with
Jednostka Ratownictwa Chemicznego Sp. z o.o., a Grupa Azoty Group company.
5) Kopalnie i Zakłady Chemiczne Siarki Siarkopol S.A. – the company’s name was
changed to Grupa Azoty Kopalnie i Zakłady Chemiczne Siarki Siarkopol S.A.
as of February 11th 2014.
6) On May 19th 2014, Grupa Azoty S.A. incorporated two new subsidiaries: Grupa
Azoty Compounding Sp. z o.o. (100%) and Grupa Azoty Folie Sp. z o.o. (100%).
Grupa Azoty Compounding Sp. z o.o. was entered in the National Court Register on
June 18th 2014, while Grupa Azoty Folie Sp. z o.o. was registered on June 24th 2014.
7) On May 14th 2014, AFRIG Trade SARL, a wholly-owned subsidiary of African
Investment Group S.A., was registered.
*
Grupa Azoty PKCH Sp. z o.o. – shares held by Grupa Azoty S.A.
CTL KOLZAP Sp. z o.o.
and Grupa Azoty ZAK S.A.
49%
**
ZAKSA S.A. – shares held by Grupa Azoty ZAK S.A. (91.67%)
and CTL Chemkol Sp. z o.o. (0.783%)
„NAVITRANS” Sp. z o.o.
EKOTAR sp. z o.o. – shares held by Grupa Azoty JRCH sp. z o.o.
26,45%****
*** and Grupa Azoty PROREM sp. z o.o. (12% each)
„NAVITRANS” sp. z o.o. – shares held by Grupa Azoty S.A.,
**** Grupa Azoty Zakłady Azotowe „Puławy” S.A.
TECHNOCHIMSERWIS S.A.
and Bałtycka Baza Masowa sp. z o.o.
closed type
25%
Correct as at 31 December 2013 r.
10
G4-3
G4-5
G4-6
G4-17
G r u pa A zot y G ROUP ' S STRUCTURE
The Group comprises Grupa
Azoty S.A. of Tarnów and its eight
subsidiaries (seven companies in
which the Parent holds interests
above 50%, and one indirectly
controlled entity). In addition to
the Tarnów-based Parent Company
of the Grupa Azoty Group, this
integrated sustainability report also
covers its three largest subsidiaries:
■■
Grupa Azoty Zakłady Azotowe
„Puławy” S.A. z Puław
(Grupa Azoty Puławy),
■■
Kędzierzyn S.A. z Kędzierzyna-Koźla
(Grupa Azoty ZAK S.A.),
■■
Grupa Azoty Zakłady Chemiczne
„Police” S.A. z Polic
(Grupa Azoty Police).
The above subsidiaries have a total
of 23 their own subsidiaries.
consolidated the Polish chemical
industry by bringing together Poland’s
largest chemical plants, including
those in Tarnów, Puławy, Police and
Kędzierzyn-Koźle. This consistently
implemented consolidation strategy
allows the Group to be a competitive
force not only in the Polish and EU
markets, but also globally.
Through its subsidiaries, the Grupa
Azoty Group has access to seaports
in Police, Gdańsk and Gdynia and the
cargo handling port in KędzierzynKoźle, and operates its own rolling
stock. The Group’s port facilities and
rolling stock are adapted for transport
of fertilizers and chemical products.
The four companies covered by this
report account for the majority of
the Group’s revenue and operations.
In addition, the Group’s consolidated
financial statements also take into
account the following five subsidiaries
of Grupa Azoty:
■■
Grupa Azoty ATT Polymers GmbH
of Guben, Germany,
■■
Grupa Azoty Polskie Konsorcjum
Chemiczne Sp. z o.o. (Tarnów),
■■
Grupa Azoty „Koltar” Sp. z o.o.
(Tarnów),
■■
Grupa Azoty Kopalnie i Zakłady
Chemiczne Siarki „Siarkopol” S.A.
(Grzybów),
■■
Navitrans Sp. z o.o.
(Gdynia, an indirectly
controlled subsidiary).
The constituent companies
bring various specialisations
and capabilities into the Group,
which is where its strength
comes from. The wealth of their
experience offers a potential
for synergies released through
the consolidation process.
11
Size alone does not
guarantee strength.
Because strength
without flexibility
is an illusion.
Which is why great
organizations need
to be built from diverse
elements, in order to
manage them wisely
in every situation.
G r u pa A zot y Com pan i e s
Grupa Azoty S.A.
full name: Grupa Azoty Spółka Akcyjna
Grupa Azoty S.A. has been present
on the market for nearly 90 years.
Consolidation
Grupa Azoty S.A. is the Parent
of its group (the Grupa Azoty
Group). Over the last five years,
the Company has implemented
a strategy to consolidate the most
valuable assets of the Polish chemical
industry. As a result, it has brought
together under a single brand a host
of companies with different
traditions and complementary
business profiles.
Grupa Azoty S.A.
on the capital market
Ticker symbol: ATT
Grupa Azoty S.A. has been listed
at the Warsaw Stock Exchange
since 2008. Since 2009, it has
been included in the Respect Index,
and since 2013 – in the MSCI
Emerging Markets index.
Specialist focus
Grupa Azoty S.A.’s core business
comprises manufacture and sale
of mineral fertilizers, engineering
plastics (including raw ingredients
for their production), and other
chemicals, as well as provision
of related services.
Management Board
Paweł Jarczewski
Grupa Azoty S.A. is a major producer
of nitrogen fertilizers:
Vice-President of the Management Board
Witold Szczypiński
Vice-President of the Management Board,
Director General
Andrzej Skolmowski
Krzysztof Jałosiński
■■
standard CAN 27 calcium
ammonium nitrate,
■■
AN 32 ammonium nitrate, and
particularly of
■■
fertilizers with a sulfur content:
Saletrosan®26, and
Marian Rybak
AS 21 ammonium sulfate,
Artur Kopeć
■■
Marek Kapłucha
Member of the Management Board
of which it is the largest domestic
manufacturer. It is the only Polish
producer of polyacetal and a leading
producer of modified engineering
plastics based on polyamide 6,
polyacetal and other compounds.
The Company offers caprolactam
(both in liquid and crystalline forms),
as well as polyacetal and polyamide 6,
of which it is an integrated producer.
Grupa Azoty S.A. also offers chemicals
(such as cyclohexanone and mixed
acids) and catalysts. It is a provider
of modern laboratory services.
The Company has its own research
facilities, performing over a million
analyses per year. It concentrates both
on research into new products and
technologies, and on development
of existing products.
Supervisory Board
Monika Kacprzyk-Wojdyga
Chairperson of the Supervisory Board
Jacek Obłękowski
Vice-Chairperson of the Supervisory Board
Ewa Lis
Secretary of the Supervisory Board
Robert Kapka
Member of the Supervisory Board
Tomasz Klikowicz
Artur Kucharski
Marek Mroczkowski
Zbigniew Paprocki
Ryszard Trepczyński
Correct as at 17 July 2014
14
Grupa Azoty ZAK S.A.
full name: Grupa Azoty Zakłady Azotowe Kędzierzyn Spółka Akcyjna
Grupa Azoty ZAK S.A. has been
present on the market for over
60 years.
Consolidation
Grupa Azoty ZAK S.A. joined
the consolidation process of
the Grupa Azoty Group in 2010,
when Grupa Azoty S.A. acquired
a 52.62% interest in the company.
Subsequently, in 2011, it acquired
a further 40.86% of its shares
(which brought its total shareholding
in Grupa Azoty ZAK S.A. to 93.48%).
Specialist focus
Grupa Azoty ZAK S.A.’s business
profile consists in manufacture,
provision of services and trading
operations involving fertilizers
and nitrogen compounds, OXO
alcohols and plasticizers, as well
as other organic and inorganic
chemicals.
Management Board
Adam Leszkiewicz
In terms of capacity,
Grupa Azoty ZAK S.A. is currently
the third largest domestic producer
of nitrogen-based fertilizers with
excellent spreading properties.
Grupa Azoty ZAK S.A. offers such
nitrogen fertilizers as:
Supervisory Board
Andrzej Skolmowski
■■
■■
■■
■■
Zaksan®,
SALMAG® (a line of fertilizer products),
calcium ammonium nitrate,
46% granulated urea.
It also markets a range of plasticizers
under the Oxoplast® brand, and
a range of products from the OXO
alcohol category.
The branded products offered
by the company also include NOXyTM
(AdBlue®).
Grupa Azoty ZAK S.A. was the first
in Poland to develop the processes
to obtain basic chemical products
such as urea, phthalic anhydride,
maleic anhydride, and OXO alcohols,
and to launch these products for
commercial production. Specialists
who had gained experience launching
that production became the core
group of professionals who have
helped launch subsequent chemical
plants in Poland.
15
President of the Management Board,
Director General
Mirosław Ptasiński
Head of the Finance Department
Dariusz Bednorz
Krzysztof Kamiński
Jerzy Koziara
Paweł Polański
Marek Kapłucha
Witold Szczypiński
Marcin Stanisław Witkowski
Grupa Azoty Police
full name: Grupa Azoty Zakłady Chemiczne „Police” Spółka Akcyjna
Grupa Azoty Police has been present
on the market for over 40 years.
Consolidation
Grupa Azoty Police joined
the Grupa Azoty Group in 2011,
when Grupa Azoty S.A. acquired
a 66% interest in the company.
Grupa Azoty Police
on the capital market
Ticker symbol: PCE
Grupa Azoty Police has been
listed at the Warsaw Stock Exchange
since 2005.
Specialist focus
Grupa Azoty Police’s business
profile consists in manufacture,
provision of services and trading
operations involving compound
fertilizers, ammonia, phosphoric
and sulfuric acid, titanium white,
and other chemicals.
Management Board
Grupa Azoty Police manufactures
the following compound mineral
and nitrogen fertilizers:
■■
■■
■■
■■
POLIDAP®,
POLIFOSKA®,
POLIMAG®,
mocznik.pl®.
Director General
Wojciech Naruć
Rafał Kuźmiczonek
Supervisory Board
Paweł Jarczewski
Anna Tarocińska
Production and sale of such
products as Likam®, a water
solution of ammonia, and NOXy™
(also marketed as AdBlue®)
are other important elements
of the company’s operations.
Marcin Likierski
Core areas of its business also
include production of titanium white
and its by-products: iron (II) sulfate
and hydrolytic acid. Grupa Azoty
Police operates the only titanium
hite production facility in Poland.
Titanium dioxide pigments are sold
under the TYTANPOL® trademark.
The company operates its own
deep-sea port, located just next
to the production facilities
(Poland’s fourth largest seaport
by weight of cargo handled).
16
Wiesław Markwas
Andrzej Skolmowski
Grupa Azoty Puł awy
full name: Grupa Azoty Zakłady Azotowe „Puławy” Spółka Akcyjna
Grupa Azoty Puławy has been present
on the market for over 50 years.
Consolidation
Grupa Azoty Puławy joined
the Grupa Azoty Group in 2012,
when Grupa Azoty S.A. acquired
a 10.3% interest in the company.
The consolidation gained a new
momentum in 2013, when
following exchange of shares
by the shareholders of Zakłady
Azotowe Puławy S.A. for shares
in Zakłady Azotowe w TarnowieMościcach S.A., the Tarnów-based
company increased its interest
in the former to 83.7%, and
subsequently, following the
acquisition of an additional
block of shares, to 95.89%.
Specialist focus
Grupa Azoty Puławy’s business
profile consists in manufacture,
provision of services and trading
operations involving mineral
fertilizers and chemical products.
The company’s flagship mineral
fertilizer products include:
■■ PULAN®,
■■
■■
■■
■■
It also manufactures chemicals,
including the following key products:
■■
■■
■■
■■
Grupa Azoty Puławy
on the capital market
Ticker symbol: ZAP
Grupa Azoty Puławy has been
listed at the Warsaw Stock Exchange
since 2005.
PULREA®,
RSM® and RSM®S,
PULASKA®,
PULSAR®.
■■
■■
Melamina®,
Caprolactam®,
hydrogen peroxide,
PULREA®,
PULNOX®,
NOXy™ (previously AdBlue®).
Management Board
Marian Rybak
Wojciech Kozak
Zenon Pokojski
Supervisory Board
Cezary Możeński
Jerzy Koziara
Jacek Józef Wójtowicz
Andrzej Bartuzi
Marek Kapłucha
Andrzej Skolmowski
Being a parent of its own group,
Grupa Azoty Puławy is able to offer
a vast range of fertilizer products:
phosphate fertilizers and fertilizer
blends (Fosdar™ Enhanced
Superphosphate, Amofoska®),
fertilizer blends produced at GZNF
Fosfory of Gdańsk, the Agrafoska
and Amofosmag fertilizers produced
at Agrochem Dobre Miasto, as well
as potassium nitrate fertilizer and
calcium nitrate manufactured
at Zakłady Azotowe Chorzów S.A.
The plants of the Grupa Azoty Puławy
Group also manufacture sulfuric acid,
sodium bisulfite, as well as technicaland food-grade potassium nitrate.
17
GZNF FOSFORY
full name: Gdańskie Zakłady Nawozów Fosforowych "FOSFORY" Sp. z o.o.
A subsidiary of Grupa Azoty Puławy.
Gdańskie Zakłady Nawozów
Fosforowych Fosfory Sp. z o.o.
is a manufacturer and service
provider.
Specialist focus
The company began its operations in
1912 as a manufacturer of sulfuric acid
and various inorganic salts.
Management Board
Mirosław Turzyński
The present business profile
of Gdańskie Zakłady Nawozów
Fosforowych FOSFORY Sp. z o.o.
consists in manufacture of agricultural
fertilizers and chemical products, as
well as provision of cargo handling
and laboratory services.
The company’s range of fertilizer
products includes mineral fertilizers
with extensive applications in
agriculture, cultivation of fruits and
vegetables.
Its product offering also includes
Amofoska fertilizers, such as:
■■
■■
■■
■■
AMOFOSKA NPK 5-10-25+0,1B
AMOFOSKA NPK 4-16-18
and FOSDAR™ 40 Enhanced
Superphosphate.
Gdańskie Zakłady Nawozów
Fosforowych Fosfory Sp. z o.o.
also offers sulfuric acid and
sodium bisulfite.
Leveraging its convenient
location within the Gdańsk port,
the company has, since 1976,
conducted extensive forwarding
activities involving the services
of handling bulk cargo transported
by sea. The company also uses
its advanced laboratory facilities
to offer a broad range of laboratory
services.
18
Andrzej Szymańczak
Supervisory Board
Zenon Pokojski
Weronika Gągała
Marek Zatorski
Grażyna Pawlik
Zakł ady Azotowe Chorzów
full name: Zakłady Azotowe Chorzów S.A.
A subsidiary of Grupa Azoty Puławy.
is a production company.
Specialist focus
focuses on manufacture and sale
of chemical products, fertilizers,
and approved food additives.
Its range of fertilizer products
includes:
■■ potassium nitrate,
■■ fertilizer calcium nitrate,
■■ fertilizer blends - NPK,
■■ monopotassium phosphate.
offers industrial chemicals, including
technical-grade potassium nitrate,
Scalnit 50, and Borax pentahydrate.
It also manufactures food additives
(including food-grade potassium
nitrate, ammonium carbonate E503,
disodium diphosphate E450 and
other).
In 2013, a state-of-the-art animal
fats processing facility was placed
in service at Zakłady Azotowe
Chorzów S.A., enabling it to produce
stearin and glycerin. The facility,
worth PLN 65m, is the first plant
of this type in Poland. Its annual
stearin production capacity
is 13 thousand tonnes.
Zakłady Azotowe CHORZÓW was
established in 1916. Next to Grupa
Azoty S.A., the Chorzów-based
company is the birthplace of the
Polish chemical industry, which
was created in the interwar period
by the then President of Poland
Ignacy Mościcki and Minister of State
Treasury Eugeniusz Kwiatkowski.
19
Management Board
Krzysztof Burzański
Krzysztof Mendecki
Supervisory Board
Anna Gol
Wiesław Olszak
Adam Leszkiewicz
Kinga Śluzek
Ewa Sobczyk
Kamil Zwolański
Grupa Azoty ATT Polymers
full name: Grupa Azoty ATT Polymers GmbH
Grupa Azoty ATT Polymers GmbH
was established over 50 years ago.
Consolidation
Grupa Azoty ATT Polymers joined
the consolidation of the Grupa Azoty
Group in 2010, when Grupa Azoty S.A.
acquired 100% of the shares in the
German company, which was then
in bankruptcy.
Specialist focus
is engaged in the production and
sale of polyamide 6, marketed
under the trade name of Alphalon™.
Management Board
Krzysztof Pieńkowski
Managing Director
Jacek Dychtoń
Managing Director
The business of Grupa Azoty ATT
Polymers includes the processing
of caprolactam into polyamide 6,
natural or modified, with relative
viscosities of 2.4–4.0.
The company’s aggregate production
capacities are about 45 kt per year.
The production facilities in Guben
are characterised by considerable
flexibility, allowing the company,
and consequently the Grupa Azoty
Group, to easily respond to changing
customer needs.
20
Supervisory Board
Andrzej Skolmowski
Małgorzata Malec
Jan Wais
Grupa Azoty SIARKOPOL
full name: Grupa Azoty Kopalnie i Zakłady Chemiczne Siarki „Siarkopol” S.A.
Grupa Azoty SIARKOPOL has
operated for nearly 50 years.
Consolidation
Grupa Azoty SIARKOPOL joined
the consolidation of the Grupa Azoty
Group in 2013, when Grupa Azoty S.A.
acquired an 85% interest
in the company.
Specialist focus
Grupa Azoty SIARKOPOL offers
the following sulfur-based products:
■■ liquid sulfur,
Management Board
Marian Kosowicz
Director General
■■
granulated sulfur,
Dariusz Bednorz
■■
milled sulfur,
■■
flaked sulfur,
Mirosław Osiecki
■■
carbon disulfide,
■■
sulfur insoluble in CS2 – POLSINEX.
Zbigniew Snopkiewicz
The company is one of few producers
of sulfur insoluble in carbon disulfide,
which is an important raw material
for the tyre industry.
The company’s Osiek sulfur mine
is currently the world’s only native
sulfur mine using the underground
melting method to extract the
mineral. The mine’s production
capacity ranges from 600 thousand
to 960 thousand tonnes per year.
Exports account for 80% of
Grupa Azoty SIARKOPOL’s revenue.
Supervisory Board
Marek Kapłucha
Barbara Haraburda
Andrzej Kapłan
Sławomir Krawczykowski
Wojciech Naruć
Witold Szczypiński
21
Grupa Azoty KOLTAR
full name: Grupa Azoty „Koltar” spółka z ograniczoną odpowiedzialnością
KOLTAR was established nearly
15 years ago, following the
transformation of Zakład Transportu
Kolejowego, a railway transport
business unit which was then
part of Zakłady Azotowe
w Tarnowie-Mościcach S.A.
Specialist focus
Within the Grupa Azoty Group, the
company is responsible for railway
transport of goods, forwarding,
infrastructure maintenance and
rolling stock management. It also
successfully provides its services
to customers outside the Group.
Consolidation
Grupa Azoty KOLTAR is a direct
subsidiary of Grupa Azoty S.A.
Initially, the company’s business
consisted only in maintenance
of the rolling stock and railway
siding of Zakłady Azotowe
w Tarnowie-Mościcach S.A.,
but as the company developed,
it started to provide services to
external customers, including
the Group companies.
In 2013, the company set on tracks
more than 1,300 trains, which
have covered over 160 thousand
train-kilometres running
on PKP PLK S.A. tracks.
Grupa Azoty KOLTAR has been
maintaining its position as a valued
service provider in Poland in the
area of rolling stock repairs and
licensed transportation services,
seeking to expand the latter
business. The company is one
of the few business operators
in Poland licensed to perform
comprehensive repairs of rail
car chassis and tanks suitable for
transporting hazardous materials.
22
Management Board
Piotr Golemo
Director General
Jarosław Wrona
Financial Director
Grupa Azoty PKCh
full name: Grupa Azoty Polskie Konsorcjum Chemiczne spółka z ograniczoną odpowiedzialnością.
Grupa Azoty PKCh was established
over 5 years ago.
Consolidation
Grupa Azoty PKCh consolidated
with the Grupa Azoty Group in 2009
(when Grupa Azoty S.A. and the
Grupa Azoty ZAK acquired interest
in the company – 25% each).
Next Grupa Azoty S.A. (previously
Zakłady Azotowe w TarnowieMościcach S.A.) acquired 50%
interest in PKCh from the Ciech
Group, and then together with Grupa
Azoty ZAK S.A. (previously ZAK S.A.)
acquired additional shares in PKCh
(Polskie Konsorcjum Chemiczne)
as a result of the share capital increase
by bringing shares of: Biuro Projektów
Zakładów Azotowych ‘BIPROZAT’
– Tarnów Sp. z o.o., Jednostka
Ratownictwa Chemicznego Sp. z o.o.,
PROReM Sp. z o.o., ZWRI Sp. z o.o.,
AUTOMATYKA Sp. z o.o., ASTER ZAK
Sp.z o.o., ZAK SERWIS Sp.z o.o., REKOM
Sp.z o.o., CHEMZAK Sp.z o.o. (those
companies have been mergered,
except for ZWRI Sp. z o.o., which
has been sold). As a result of those
changes the Grupa Azoty Group
is holding 63.27% shares in Grupa
Azoty PKCh and Grupa Azoty ZAK S.A.
is holding 36.73% shares. Grupa Azoty
PKCh plays a vital role in the Group’s
consolidation through integrating and
reorganizing companies’ production
environment. The process has been
ongoing since 2011.
Specialist focus
Grupa Azoty PKCh offers
high-quality, comprehensive
services related to design,
preparation and implementation
of investment projects, as well
as repairs, maintenance and
keeping of the Grupa Azoty Group’s
production lines in operational
condition.
Additionally, the activities of
Grupa Azoty PKCh also include
management of highly specialised
subsidiaries.
The Grupa Azoty PKCh Group
comprises:
■■ Grupa Azoty Jednostka Ratownictwa
Chemicznego sp. z o.o.,
■■ Grupa Azoty Prorem sp. z o.o.,
■■ Grupa Azoty Automatyka sp. z o.o.
Management Board
Jerzy Woliński
Beata Kurbiel
Henryk Chromik
Marek Zatorski
Supervisory Board
Witold Szczypiński
Mirosław Ptasiński
Deputy Chairperson of the Supervisory Board
Krzysztof Kamiński
Andrzej Skolmowski
Rafał Smoła
23
Grupa Azoty prorem
Grupa Azoty JRCh
Grupa Azoty Automatyka
full name: Grupa Azoty Prorem spółka
z ograniczoną odpowiedzialnością
full name: Grupa Azoty Jednostka
Ratownictwa Chemicznego spółka
z ograniczoną odpowiedzialnością
full name: Grupa Azoty
Automatyka spółka z ograniczoną
odpowiedzialnością
A subsidiary of Grupa Azoty PKCh.
Grupa Azoty PROREM is a services
company.
Grupa Azoty JRCh is a service
provider and manufacturing company.
Grupa Azoty AUTOMATYKA
is a services company.
Specialist focus
Grupa Azoty PROREM specialises in
supervision, delivery, start-up and
commissioning of newly developed
and operated facilities.
Specialist focus
Grupa Azoty JRCh’s offering
includes specialised rescue services,
performance of high-risk work and
wastewater treatment.
Its specialist services consist in:
■■ repairs and construction of
chemical installations and steel
structures; steam generators and
water boilers; fixed pressurised
and non-pressure tanks and other
specialist industrial facilities;
The company specialises in:
■■ collection, treatment and storage
of hazardous waste (including
asbestos) and other waste,
Specialist focus
The core business of Grupa Azoty
AUTOMATYKA comprises design,
installation, start-up and servicing of
industrial control and instrumentation
systems. Besides industrial automatics
and C&I systems, the company is also
active in the following areas:
■■ power engineering,
■■
■■
comprehensive handling of
industrial projects: construction
and repair of process installations
for the chemical, petrochemical
and power industries;
mounting or erection of industrial
facilities and installations; heat
transfer stations, heat exchange
plants; gas installations, ventilation
systems; transmission pipelines;
steel structures, hoisting facilities.
The company also offers testing
services, including radiography
(non-destructive testing), ultrasonic,
magnetic particle and penetration
thickness gauging. It specialises in
machinery diagnostics and water
jet cutting.
■■
production of chemicals and
sale of feedstocks for chemical
production,
■■
specialised rescue services,
performance of high-risk work,
■■
industrial wastewater treatment,
■■
packaging of liquid and loose
materials.
Grupa Azoty JRCh has PCA-accredited
laboratories which perform tests
and analyses of wastewater, waste,
water, hazardous agents present
in the workplace, emission of
substances into the atmosphere,
nutrition and foodstuffs.
The laboratories also offer
a wide range of microbiological
and veterinary diagnostic tests.
Moreover, Grupa Azoty JRCh provides
professional and specialised training,
as well as skill improvement courses.
■■
security systems,
■■
telecommunications,
■■
IT.
The company is able to provide
such a broad range of services thanks
to its vast technical resources.
The high qualifications of its
employees and their experience
in the fields of chemical production,
power generation and environmental
protection have allowed the company
to efficiently develop new dedicated
solutions and, if necessary, integrate
them with systems already operated
by its customers. The company
has modern diagnostic, repair and
calibration workshops for measuring
instruments and control system
elements, machine shops, a 0.4 and 6 kV
test bench and a calibration laboratory.
Management Board
Artur Maciejczyk
Robert Buczek
Management Board
Artur Sebesta
Management Board
Leszek Gniadek
Chief Financial Officer
Janusz Semeniuk
Andrzej Paryło
Agata Gorzkowska-Rams
Chief Operating Officer
Katarzyna Piekarska
Member of the Management Board, Finance
Supervisory Board
Jerzy Woliński
Maciej Włoch
Member and Secretary of the Supervisory Board
Wiesław Kozioł
24
25
Companies,
like people, grow,
learn, identify their
surroundings.
But only a select few
get to set out into the
wide world and explore
distant countries
and continents.
26
G ROUP ’ S EXPANSION
G4-13
Over the last six years, Grupa
Azoty S.A. has pursued
a strategy to consolidate the
most valuable assets of the
Polish chemical industry.
As a result, it has brought
together under a single
brand a host of companies
with different traditions and
complementary business
profiles. In 2009−2012,
the Grupa Azoty Group was
joined by two companies
operating in the Polish sector
of ’large-scale chemical
synthesis’ (heavy chemicals),
based in Kędzierzyn-Koźle and
Police, as well as a German
company based in Guben.
The most important event of 2013
was the concluded acquisition
of Grupa Azoty Puławy shares.
Other integration processes
were also ongoing in that period,
as a result of which the Grupa Azoty
Group has developed into a strong
conglomerate. The management
model adopted by the Group
supports its consolidation and
effective management of the
growing organisation (for more
information, see ’Management
model’). These developments
have primarily delivered economic
benefits, but, what is also important,
they may have an effect on the Grupa
Azoty Group’s future impact on its
social and natural environment1.
The Group’s own phosphate
rock reserves in Senegal
SIARKOPOL in the
Grupa Azoty Group
In August 2013, Grupa Azoty Police
purchased a 55% interest in African
Investment Group S.A. (Afrig S.A.).
Afrig S.A. holds licences for the
development of phosphate and
ilmenite rock reserves in Senegal.
Thanks to the transaction, Grupa Azoty
Police has become the first Polish
chemical company with its own
mineral deposits. As it no longer
depends on external suppliers,
the company should be able to
save ca. PLN 30m in 2014 alone.
In Q4 2013, Grupa Azoty S.A.
acquired an 85% equity interest
in Kopalnie i Zakłady Chemiczne Siarki
Siarkopol S.A. of Grzybów, assuming
control over the company.
Its presence in Senegal is also
expected to aid the company’s
plans of sales expansion in Africa,
as ships carrying the minerals to
Police would carry back fertilizers
for sale on African markets, which
would optimise costs. In the target
logistics structure, currently under
consideration, the phosphoric acid
manufacture would be launched
locally, in Senegal.
The new company, currently
operating under the name of Grupa
Azoty Siarkopol, has strengthened the
Grupa Azoty Group by enhancing its
access to strategic feedstocks. On the
other hand, Grupa Azoty Siarkopol
has gained access
to new foreign markets thanks
to the synergies with Grupa Azoty S.A.,
including the latter’s extensive trade
relationships. Grupa Azoty S.A.
has committed to invest PLN 30m
in Siarkopol’s plant to stabilise
production and improve the level
and quality of sulfur granulation.
Calendar of acquisitions 2007–2013
9.8
Acquisition of a controlling interest in ZA Puławy S.A.
Acquisition of an 85% interest in KiZCHS „Siarkopol” S.A.
7.1
Acquisition of a 10.3% interest in ZA Puławy S.A.
in the first tender offer
5.3
Acquisition of a 66% interest in Z.Ch. Police S.A.
Acquisition of a 41% interest in ZAK S.A.
Acquisition of Unylon Polymers GmbH
Acquisition of a 53% interest in ZAK S.A.
1.9
1 The organisational structure of the Grupa Azoty
Group and the changes ongoing therein are
described in detail in the Directors’ Report
on the Operations of Grupa Azoty S.A. for the
12 months ended December 31st 2013, available
at http://tarnow.grupaazoty.com/pl/relacje/
raportyr.
1.3
1.4
2007
2008
1.2
2009
2010
2011
2012
Skonsolidowane przychody w mld zł
27
2013
G4-16
Grupa Azoty’s membership in organisations
1. Polska Izba Przemysłu Chemicznego
(Polish Chamber of Chemical Industry
− PIPC)
27. Stowarzyszenie Zachodniopomorski
Klaster Chemiczny (West Pomerania
Chemical Cluster)
2. Fertilizers Europe
28.Towarzystwo Ziemi Kozielskiej
(Koźle Region Association)
3. Plastics Europe
4. ECPI (European Council for Plasticisers
and Intermediates)
5. INCOPA (Inorganic Coagulants
Producers Association)
6. TDMA (Titanium Dioxide
Manufactures Association)
7. IFA (International Fertilizer Industry
Association)
8. EMPA (European Melamine Producers
Association), a Sector Group of CEFIC
9. Pracodawcy RP (Employers of Poland)
10. Polski Związek Przetwórców Tworzyw
Sztucznych (Polish Association of
Plastics Processing Companies)
11. Jury of the Responsible Care
programme
12. Stowarzyszenie Emitentów Giełdowych
(Polish Association of Listed Companies)
13. CEFIC (European Chemical Industry
Council)
14. EPF (European Panel Federation)
15. EPCA (European Petrochemical
Association)
16. European Sulphuric Acid Association
17. Polskie Forum AkademickoGospodarcze (Polish Higher
Education-Business Forum)
18. Polish-Brazilian Chamber
of Commerce
19. Grupa Promocyjna NPG-6
(NPG-6 Promotional Group)
20.Izba Przemysłowo-Handlowa
w Krakowie (Kraków Chamber
of Commerce and Industry)
21. Izba Energetyki Przemysłowej
i Odbiorców Energii (Polish Chamber
of Industrial Power and Energy
Consumers)
22.Północna Izba Gospodarcza (North
Poland Chamber of Commerce)
23. Tarnowskie Towarzystwo Naukowe
(Tarnów Scientific Association)
24. Regionalna Izba Gospodarcza
(Regional Chamber of Commerce)
25. Brytyjsko-Polska Izba Gospodarcza
(British Polish Chamber of Commerce)
26.Business Club Szczecin (Szczecin
Business Club)
29.Stowarzyszenie Elektryków Polskich
(Association of Polish Electrical
Engineers), Management Board
of the Tarnów Division
30.Izba Przemysłowo-Handlowa
w Tarnowie (Tarnów Chamber
of Commerce and Industry)
31. Puławska Izba Gospodarcza
(Puławy Chamber of Commerce)
32. BCC (Business Centre Club)
33. Opolska Izba Gospodarcza
(Opole Chamber of Commerce)
34. Tarnowski Klub Techniki
i Racjonalizacji (Tarnów Club
of Technology and Technological
Improvements)
35. Polska Izba Rzeczników Patentowych
(Polish Chamber of Patent Attorneys)
36. Polskie Forum ISO 9000
(Polish ISO 9000 Forum)
37. Stowarzyszenie Inżynierów
i Techników Przemysłu Chemicznego
(Polish Association of Chemical
Engineers)
47. Forum Liderów Bezpiecznej Pracy
(Forum of Safe Work Leaders)
48.Krajowa Sieć Informatyczna
Europejskiej Agencji Bezpieczeństwa
i Zdrowia w Pracy (National IT Network
of the European Agency for Safety and
Health at Work)
49. Komitet Chemii Polskiej Akademii
Nauk (Chemistry Committee of the
Polish Academy of Sciences)
50.Centrum Zaawansowanych
Technologii przy Instytucie Chemii
Przemysłowej (Advanced Technology
Centre at the Industrial Chemistry
Institute)
51. Polska Platforma Technologiczna
Wodoru i Ogniw Paliwowych (Polish
Hydrogen And Fuel Cell Technology
Platform)
52. Polska Platforma Technologiczna
Zrównoważonej Chemii
(Polish Technological Platform
for Sustainable Chemistry)
53. Polska Platforma Technologiczna −
Bezpieczeństwo Pracy w Przemyśle
(Polish Technological Platform for
Safety at Industrial Work Places)
54. Narodowa Fundacja Ochrony
Środowiska (National Foundation
for Environmental Protection)
38.Klub Polskich Laboratoriów
Badawczych POLLAB (POLLAB Club
of Polish Research Laboratories)
55. Polska Grupa Bezpieczeństwa
Chemicznego (Polish Chemical
Safety Group)
39. Stowarzyszenie Eksporterów Polskich
(Association of Polish Exporters)
56. Towarowa Giełda Energii S.A.
40.Stowarzyszenie Księgowych w Polsce
(Accountants Association in Poland)
41. Stowarzyszenie Konsumentów
i Importerów Soli Potasowej
(Association of Consumers and
Importers of Potassium Chloride)
42. ISSA (International Security Systems
Association)
43. Stowarzyszenie Księgowych w Polsce
(Kraków Branch of Accountants
Association in Poland)
44.PTBRiO – Polskie Towarzystwo
Badaczy Rynku i Opinii (Polish
Association of Public Opinion
and Market Research Firms)
45. Forum ISO 14000
(Polish ISO 14000 Forum)
46.System pomocy w transporcie
materiałów niebezpiecznych SPOT
(SPOT System of Assistance in
Hazardous Material Transport)
28
57. Forum Dużych Konsumentów Gazu
(Large Gas Consumer Forum)
58.Naczelna Organizacja Techniczna NOT
(Polish Federation of Engineering
Associations NOT)
59. Izba Rzemieślnicza oraz Małej
i Średniej Przedsiębiorczości
w Tarnowie (Tarnów Chamber of Craft
and SMEs)
60.Puławskie Centrum Przedsiębiorczości
(Puławy Entrepreneurship Centre)
61. Konsorcjum Info-Tech-Med
(Info-Tech-Med Consortium)
62.Klub Sportowy Azoty-Puławy
(Azoty-Puławy Sports Club)
63.Fundacja Pomocy Szpitalowi
Puławskiemu (Puławy Hospital
Assistance Foundation)
64.Puławska Szkoła Wyższa
(Higher School of Puławy)
65. Polski Komitet Normalizacyjny
(Polish Committee for Standardization)
Important business awards and high ranking positions in 2013
january
june
2012 Platinum Laurels of Skills
and Competence awarded to
the President of the Grupa Azoty
Management Board in the manager/
community and business leader
category by the Opole Laurels
of Skills and Competence Jury.
Grupa Azoty in the high, 33rd place
of the 1,000 Top Polish Companies
league table prepared by the editorial
board of Gazeta Finansowa, where
companies are rated by revenue.
febuary
Grupa Azoty S.A. named ’Polish
Industry Transformer’ in recognition
of its consolidation with Zakłady
Azotowe Puławy. The awards
are organised by Grupa Polskie
Towarzystwo Wspierania
Przedsiębiorczości, the publisher
of Nowy Przemysł monthly
and wnp.pl website.
april
Grupa Azoty won the first prize
in the 2012 edition of the Pillars
of Polish Economy survey in
recognition of its outstanding
contribution to the Kraków region.
The survey is administered by
a leading research agency
in partnership with Puls Biznesu daily.
Grupa Azoty ZAK S.A. won a similar
distinction in the Opole region.
Grupa Azoty ranked 30th in the
Top 500 Polish Businesses league
table compiled by Rzeczpospolita
daily.
Grupa Azoty Puławy named
’Reliable Employer’ in the 2012
edition of the award.
may
Grupa Azoty in the high, 25th position
of the Top 500 Polish Companies
ranking list published by Polityka
weekly (in terms of consolidated
revenue).
september
Rzeczpospolita Ranking List.
Rzeczpospolita daily and Deloitte
teamed up to compile a ranking
table of the largest companies
in 18 countries, published on
September 4th. The most impressive
leap among Polish companies was
made by Grupa Azoty, which climbed
from the 144th to the 98th position.
november
Grupa Azoty Puławy was a
second-time winner of the
’Well-Perceived Company’ survey
run by the Business Centre Club’s
Association of Employers.
The annual Polish Chemical Awards
were presented during the national
Polish Chemical Forum conference.
Grupa Azoty received the awards
in three out of the nine categories.
Grupa Azoty President named
TOP EXECUTIVE OF THE YEAR for
setting and delivering on bold
visions of growth, implementing
future-oriented innovative projects,
and aptly leveraging synergies at the
time of a new beginning for the Polish
strategic chemical company.
Grupa Azoty S.A. received the
Chemical Company of the Year
award for its consolidation of the
chemical industry and ambitious
growth strategy, including its
landmark petrochemical project
pursued jointly with Grupa LOTOS.
Grupa Azoty Puławy won the
INVESTMENT PROJECT OF THE YEAR
award for its wet ammonia FGD
unit (Europe’s first and the world’s
third facility of its kind), liquid sulfur
fertilizer unit, and new logistics
centre.
29
During the 19th National Scientific
and Technical Conference entitled
’Chemical Industry − Challenges and
Barriers’, the jury of SITP Chem’s
’Restructuring Leader’ award
recognised the Tarnów-based
company for ’creating a chemical
group that is reshaping the industry’,
and awarded a distinction to Grupa
Azoty’s President for his commitment
to the development of the Polish
chemical industry. The jury also
expressed their appreciation for
Grupa Azoty Puławy’s restructuring
efforts.
december
During the Pearls of Polish Economy
Gala event, held at the Royal Castle
in Warsaw, awards and honours were
given to Poland’s major companies.
In the 2013 edition, Grupa Azoty S.A.
was awarded a certificate and the
Pearl of Polish Economy status in the
Large Pearls category by the editional
board of the Polish Market magazine
and the Institute of Economics of
the Polish Academy of Sciences.
Grupa Azoty Puławy also received
a ’Pearl of Polish Economy’ certificate
in the Large Pearls category for the
consistent pursuit of its corporate
policy and strategic goals and for
its leading position among the most
dynamic and efficient businesses
in Poland. Grupa
Azoty ZAK S.A was honoured with the
Konfederatka award by the Employers
of Poland for initiating and supporting
important business initiatives and for
CSR engagement.
The truth about
a company cannot
be learned solely
from its income
statement.
The real proof
of quality lies in its list
of shareholders, people
who believed in its
vision and strategy.
30
S c al e o f t h e o rgan i s at i o n an d ow n er s h i p s t r u c t u r e
2012
2013
8 607
(9 235*)
13 879
(9 335)
7 098 735
9 821 023
315 301
713 525
3 490 698
6 270 651
5 357 041
9 961 530
G4-9
The scale of the
Grupa Azoty Group
is best illustrated by
its key employment,
sales and asset
figures.
Year-end headcount at the Group
(including companies covered by this Report)
Revenue (PLN ’000)
Net profit (PLN ’000)
Equity (PLN ’000)
Total assets (PLN ’000)
G4-7
* This includes Grupa Azoty Puławy. The company was not part of the Group in 2012
and its financial statements were not consolidated.
Shares
Ownership
interest (%)
Voting rights
% of
voting rights
32 734 509
33.00
32 734 509
33.00
Norica Holding S.à.r.l., including Cliffstone Holdings Limited
15 216 094
15.34
15 216 094
15.34
ING Pension Fund
9 883 323
9.96
9 883 323
9.96
TFI PZU S.A.
8 689 591
8.76
8 689 591
8.76
Aviva OFE / Aviva BZ WBK
7 800 000
7.86
7 800 000
7.86
EBRD
5 700 000
5.75
5 700 000
5.75
Other
19 171 967
19.33
19 171 967
19.33
Total
99 195 484
100.0
99 195 484
100.0
Shareholder
State Treasury of Poland
*Ownership structure as at December 31st 2013
Grupa Azoty shares are traded on
the main market of the WSE.
The stock is included in the WIG
and mWIG40 indices, as well as the
WIG-Chemia index of the chemical
sector, the blue-chip WIG 30 index,
and the RESPECT Index of socially
responsible companies (since its
inception). In February 2013, Grupa
Azoty S.A. became part of the
prestigious MSCI Emerging Markets
index. Its two subsidiaries, Grupa Azoty
Police and Grupa Azoty Puławy, are
also listed at the WSE.
GrupA Azoty S.A. Ownership structure
Other
19.33%
State Treasury of Poland
33%
EBRD
5.75%
Aviva OFE, Aviva BZ WBK
7.86%
TFI PZU S.A.
8.76%
Grupa Azoty S.A. ownership structure
as at June 11th 2014
State Treasury of Poland 33%
Norica Holding S.à.r.l., including
Cliffstone Holdings Limited 20%
ING Pension Fund 9,96%
TFI PZU S.A. 8,76%
EBRD 5,75%
Other 22,53%
ING Pension Fund
9.96%
Norica Holding S.à.r.l., including
Cliffstone Holdings Limite
15.34%
Ownership structure as at December 31st 2013
31
Today, a business strategy cannot be
separated from a social responsibility
strategy, just as growth cannot be
separated from sustainable growth.
G4-56
The Grupa Azoty Group is pursuing
a long-term growth strategy in line
with the principles of sustainable
development and corporate social
responsibility. This comprehensive
approach to business performance
helps maintain a balance between the
financial, social and environmental
aspects of the Group companies’
operations.
G4-56
G4-2
B usi n e s s s t r at egy an d sus tai nab l e d e v elo pm en t
This Integrated Report is just one
example of the Group’s integrated
approach to business.
The key document defining the Group’s
vision of development and value
creation, to be realised by consistently
improving its competitive edge and
sustainably expanding its presence
in the global chemical market, is the
Grupa Azoty Group’s revised strategy
for 2013−20202. The strategy recognises
the new opportunities arising from the
Company’s consolidation with Zakłady
Azotowe Puławy (renamed as Grupa
Azoty Puławy).
The cornerstone of the Grupa Azoty
Group’s strategy is its mission, which
places a strong emphasis on its CSR
goals. Striving to build value for
shareholders, the Group is also aware
of the important role it plays in the
community.
Mission statement
We add life to the soil,
and colour to life. With our
accumulated experience
and expanding capabilities,
we make chemicals safe to
people. We consistently
strive to increase the value of
Grupa Azoty, taking advantage
of all available synergies and
innovations.
To successfully meet market
challenges, Grupa Azoty needs to
be innovative and exploit all available
sources of synergy. In 2013 alone,
it achieved PLN 90m in synergy
savings. Poland’s largest chemical
companies integrated into a single
entity benefit from the economies
of scale, shared distribution and
procurement functions and the
immense potential of complementary
capabilities. However, to tackle
future challenges, we must further
the integration and consolidation
processes within the Group.
In its strategy, Grupa Azoty has stated
that by the end of this decade it aims:
■■
to be listed in the blue-chip index
of the Warsaw Stock Exchange,
■■
to be generating top rates of
return for its shareholders, and
■■
to remain one of the three leading
players in the European fertilizer
market.
2 The full text of the Grupa Azoty Group’s updated
strategy for 2013−2020, including its declared
approach to corporate social responsibility,
is available at: http://grupaazoty.com/pl/grupa/
strategia.
32
B usi n e s s s t r at egy an d sus tai nab l e d e v elo pm en t
2013−2020 strategy
– Directions of growth
In its strategy, Grupa Azoty has
assumed it will grow by:
■■
increasing the scale of operations
in its core business areas through
organic growth, alliances and
M&As, both in Poland and abroad,
■■
further integration within the
Group to maximise operating
synergies,
■■
reducing the Grupa Azoty Group’s
sensitivity to energy costs through
the use of effective technologies
and energy-efficient solutions,
■■
reducing the Group’s sensitivity
to changing economic cycles
and to prices of natural gas and
petrochemical feedstocks by
extending product chains,
■■
reducing production costs by
extending product chains,
■■
building stable and effective
customer relations, increasing
awareness of the Group’s leading
brands and optimising product
logistics and distribution,
■■
improving the efficiency
of key processes defined
in the management model,
■■
continuously adapting the quality
and range of products to customer
requirements,
■■
horizontal diversification,
leveraging synergies with the
existing product portfolio,
■■
continuously improving its
products based on innovative
technologies,
■■
growing the organisation’s
intellectual capital and
transforming that potential into an
asset with substantial market value.
The overriding corporate growth
strategy is supported by a number
of functional strategies. At present,
a CSR strategy is being developed
as part of the corporate management
strategy. The first Group company
to define a sustainable development
strategy was Grupa Azoty S.A.
of Tarnów (Grupa Azoty Tarnów
Sustainable Development Strategy
for 2011−2016), which was the starting
point for work on a similar document
covering the entire Group.
The document lists the following
areas of responsibility:
■■
sustainable production
(reducing the environmental
impact of the Group companies,
fostering partnerships with
research institutions, raising
environmental awareness,
developing sustainable products,
and continued engagement
in the Responsible Care®
programme, where chemical
companies voluntarily commit to
improving their performance in the
fields of environmental protection,
workplace and plant safety, and
ongoing dialogue with their
external stakeholders),
■■
workplace (improving employee
satisfaction, workplace safety and
health protection, and providing
staff development opportunities),
■■
dialogue and relationship building
(promoting the development
of local communities, defining
the forms of dialogue with
each of the key stakeholder
groups, maintaining effective
communication in the area of
sustainable development, and
building a culture of ethics).
33
G4-34
Manag em en t m od el an d co r e valu e s
The Management Board of Grupa
Azoty S.A. performs the function
of the Management Board of the
Grupa Azoty Group. The remit of the
President includes general oversight
of the Grupa Azoty Group, while
the Management Board members
are responsible for key areas of the
Group’s operations: finance, strategy
and development, investments,
integration of production processes,
plastics and organic synthesis,
supply chain management,
social dialogue, plant safety and
environmental protection, as well
as the management of individual
Group companies.
The Grupa Azoty Group’s successful
consolidation is a source of massive
business potential. With the adopted
management model, the Group is able
to generate and leverage synergies,
and to tap the economies of scale. In
2013 alone, the effect of synergies was
estimated at about PLN 90m.Despite the
centralisation of the Grupa Azoty Group’s
main operations and management of core
economic processes at the Group level,
the subsidiaries’ identities, locations and
legal autonomy are preserved.
1
President of the
Management Board
Paweł Jarczewski
2
new Management model
In July 2013, the Management Board
of Grupa Azoty S.A. approved the
assumptions for a new model of
the Group’s management, built on
a process-based division of powers and
responsibilities between the Company’s
Management Board members.
In the same month, the document
’Ownership and governance policy’
was revised, following the inclusion
of new companies in the Grupa Azoty
Group. The overall purpose of the
corporate governance policy is to
have in place uniform Group-wide
procedures for managing individual
business processes (business areas),
and procedures for reporting
information to the governing bodies
and making disclosures to capital
market participants; and to ensure
that the disclosure requirements
and the criteria for assessment of
compliance with those requirements
are uniform and consistent.
Grupa Azoty Council
In December 2013, the Grupa Azoty
Council was set up as an advisory and
opinion-making body responsible for
initiating and backing Group-wide
projects and communicating their
progress to the managements of
individual Grupa Azoty Group companies.
The Council presents its opinions on their
3
4
Vice-President of the Vice-President of the
Management Board Management Board
Andrzej Skolmowski
Witold Szczypiński
Management
and HR
Finance
Tarnów
Auditing, risks
and compliance
Planning
and controlling
Plastics Business
Centre
Communications
IT
Organic Synthesis
Business Centre
Agro Business
Centre
IR
Production
integration
Business service
initiatives and strategic measures, and
supports their day-to-day management.
It consists of members of the Grupa Azoty
Management Board, members of the
management boards of the Company’s
subsidiaries, and the Managing Director
of Grupa Azoty S.A.
In keeping with the growth of the
Grupa Azoty Group, which is intended
to operate as a single business entity,
the organisational structure of Grupa
Azoty S.A. was subject to a number
of modifications to ensure it is able to
effectively manage the complex and everexpanding organisation
3 For more information on the adopted management
model, refer to the Directors’ Report on the
Operations of Grupa Azoty S.A. in the 12 months
ended December 31st 2013, available at http://tarnow.
grupaazoty.com/pl/relacje/raportyr. All members
of the Grupa Azoty Council are presented at http://
grupaazoty.com/pl/grupa/zarzadzanie/d. For details
on the current composition of the Management
Board and profiles of its members, see http://tarnow.
grupaazoty.com/pl/relacje/lad/zarzad, and for
details on the current composition of the Supervisory
Board and profiles of its members, go to http://
tarnow.grupaazoty.com/pl/relacje/lad/rada.
4 The modifications are described in more detail in
the Directors’ Report on the Operations of Grupa
Azoty S.A. in the 12 months ended December 31st
2013, which is available at:
http://tarnow.grupaazoty.com/pl/relacje/raportyr.
5
Vice-President of the Vice-President of the
Marek Kapłucha
6
7
Vice-President of the
Member of the
Marian Rybak
Artur Kopeć
Police
Supply chain
Puławy
Dialog społeczny
Feedstock Supply
Integration and
Maritime Logistics
Centre
Logistics support
service
Investments
Plant safety
and environmental
protection
Engineering
support service
Infrastructure
service
Strategy
and development
Energy service
34
Internal audit
The Grupa Azoty Group is managed
based on integrated management
systems, in accordance with
international standards..
The Grupa Azoty Group companies
identify risks associated with different
aspects of their operations. Aware
that risk factors may pose a threat
to sustainable development in the
long term, the Grupa Azoty Group
takes systematic steps to identify,
assess and minimise their potential
negative impact on the operating
performance of the Group companies.
The Grupa Azoty Group has a robust
internal audit system in place.
The process is managed by the
Group Internal Audit Office and
Internal Audit Departments
at individual companies. At the
Group level, the process is managed
in accordance with the International
Standards for the Professional
Practice of Internal Auditing
developed by the Institute of Internal
Auditors (IIA), and the related
internal regulations. The role of the
internal audit units is to streamline
the Group’s operations and ensure
that its corporate governance
system is appropriate and effective.
In addition, the Group Internal Audit
Office and individual Internal Audit
Departments are to support the
Grupa Azoty Group companies
in consistent and methodological
approach to the performance
evaluation and management process
enhancement.
■■
Quality Management System
compliant with the ISO 9001:2008
standard,
■■
Environmental Management
System compliant with the
ISO 14001:2004 standard,
■■
Occupational Health and Safety
Management System compliant
with the PN-N-18001:2004 and
BS OHSAS 18001:2007 standards,
■■
with the PN-EN ISO/IEC 17025:2005
standard (general requirements
for the competence of testing and
calibration laboratories),
■■
Food Safety Management System
compliant with the ISO 22000:2005
standard,
■■
Automotive Industry Quality
Management System implemented
in accordance with the
ISO/TS16949:2009 standard,
■■
Responsible Care Framework
with the guidelines of the European
Chemical Industry Council,
G4-15
■■
Energy Management System
compliant with the ISO 50001: 2011
standard (applicable to the Grupa
Azoty Police Group)
In addition to maintaining and
enhancing the above management
systems, the Grupa Azoty Group also
embraces new standards, for instance
by designing and implementing the
enterprise risk management system and
the Product Stewardship Programme
compliant with the standards adopted
by Fertilizers Europe.
In keeping with the best global
practice, the Grupa Azoty Group
is implementing a comprehensive
risk management system in its key
companies. The system involves
the design and implementation
of certain organisational and
procedural measures to provide
a general framework for the
management of risks identified
in various areas of their operation.
The Grupa Azoty Group’s risk
management is based on global
standards, in particular the
ISO 31000:2009 standard
(’Risk management – Principles and
guidelines’) and the ’Enterprise Risk
Management – Integrated Framework’
developed by COSO. As part of the
project, the Group developed
a concept for the enterprise risk
management system and verified
the risk map and register, including
for key risks.
Irrespective of the overall framework
designed for the Grupa Azoty Group’s
comprehensive risk management
system, the Group companies have
for years been identifying, assessing,
and actively managing their own
risks. Measures taken to minimise any
identified threats to their business
processes are subject to regular
reviews based on system tools.
5 For more details, refer to the websites of
individual Group companies.
6 For more information on risks and threats in
the context of the Grupa Azoty Group’s growth
prospects, refer to the Directors’ Report on the
Operations of Grupa Azoty S.A. in the 12 months
ended December 31st 2013, available at
http://tarnow.grupaazoty.com/pl/relacje/raportyr
35
G-2
The systems implemented bythe
include5:
G-34
Risk management6
G-34
Integrated
Management Systems
G-2
G4-34
MANAG EMENT MODEL AND CORE VALUES
The Group Internal Audit Office and
Audit Departments perform their
tasks on the basis of Annual Internal
Audit Plans. In view of the Group’s
growth, a single document entitled
’Internal Audit Standards for the
Grupa Azoty Group’ was developed
in 2013, providing a formal basis for
carrying out internal audit procedures
across the Grupa Azoty Group.
In addition, all companies of the
Grupa Azoty Group listed at the WSE
have set up Audit Committees, acting
as collective advisory bodies within
their respective Supervisory Boards.
Their responsibility is to monitor
the effectiveness of internal control,
internal audit and risk management
systems in place at the Group
companies.
Important capital market
awards and high ranking
positions in 2013
G4-15
Corporate governance
The Grupa Azoty Group strives to
ensure the highest standards in its
relations with the capital market.
The amended ’Code of Best Practice
for WSE Listed Companies’ of
November 2012 came into effect
at the beginning of 2013 (except
for the requirement to publish the
records of General Meetings,
in audio or video format, on
corporate websites, and to provide
all shareholders with an opportunity
to participate in General Meetings
using electronic means of
communication, especially real-time
two-way communication)7.
march
The President of the Grupa Azoty
Management Board received the
’Bulls and Bears’ award, granted for
the past 19 years by Parkiet daily
– in recognition of the successful
consolidation of the chemical
industry. The ’CEO of the Year’ title is
awarded to outstanding personalities
among the CEOs of companies listed
on the WSE.
march
RESPECT Index
Grupa Azoty S.A. ranked tenth in the
’Listed Company of the Year 2012’
ranking, organised for the 14th time
by Puls Biznesu daily – in recognition
of its achievements in the preceding
year. The Company received the
highest scores for ’Investor Relations’
(6th place) and ’Previous Year’s
Achievements’ (4th place).
Ever since 2009, Grupa Azoty S.A. has
been included in the RESPECT Index
– the first CSR-focused stock market
index in Central and Eastern Europe.
The Company’s inclusion in the
RESPECT Index is a proof that
it operates in accordance with the
highest standards in corporate
governance, corporate disclosure
discipline, and investor relations,
as well as environmental, social,
and labour-related matters.
In the main ranking, Azoty Tarnów
(currently Grupa Azoty S.A.) moved
up 20 places compared with 2011,
and as many as 256 places vs. 2009.
Zakłady Azotowe Puławy
(currently Grupa Azoty Puławy)
and Zakłady Chemiczne Police
(currently Grupa Azoty Police) also
ranked high in the Puls Biznesu
list, taking the 16th and 37th place,
respectively.
Having passed the three-step
evaluation process by the WSE,
the Polish Association of Listed
Companies and Deloitte,
on December 17th 2013 the Company
was included in the elite group
of companies covered by the
RESPECT Index for the seventh time.
april
Grupa Azoty ranked first in the
’Ranking of listed companies
demonstrating the strongest
growth’, organised by Forbes;
the President of the Grupa Azoty
Management Board received
a distinction in the ’Best CEOs of
Listed Companies’ ranking by Forbes.
7 For more information on compliance with
the corporate governance standards, refer
to the Directors’ Report on the Operations
of Grupa Azoty S.A. in the 12 months ended
December 31st 2013, which is available at
http://tarnow grupaazoty.com/pl/relacje/raportyr.
september
Grupa Azoty S.A. received a statuette
confirming its inclusion in the WIG30
index.
36
G4-56
LA DMA12
HR DMA3
SO DMA5
SO DMA6
In 2013, the Grupa Azoty Group
was working on the organisational
framework and management system
for its ethical conduct programme.
Following a period of intensive work,
the Management Board adopted two
key documents8:
■■
’Code of Organisational Culture
– the Grupa Azoty Group’s
organisational and management
system’
■■
’The Grupa Azoty Group’s Code
of Ethical Conduct’.
The common ethical values,
shared by employees of all
companies and their plants,
play a crucial role in corporate
culture building, as they will
strengthen the Group’s cultural
integration, which will bring
further benefits in the form
of synergies.
Soft management, or management
through values shared by all
employees, is a key to successful
growth through mergers. Therefore,
the Management Board and the
Supervisory Board have good reasons
to attach great importance to this
aspect. The process started with the
standardisation of all company names
and adoption of a new brand which −
while drawing on the remarkable and
rich tradition of the Group companies
− is focused on the future, growth and
innovations. The two new Codes are
currently being implemented.
8 The documents were formally approved in 2014.
G4-SO5
Ethical values and principles
in the organisation’s
management
The ’Code of Organisational Culture’
highlights not only the Group’s
corporate culture model and its source,
but also defines the management
standards and model, which is flexible
and universal enough to allow for
future growth through mergers and
acquisitions. It also describes the
brand and internal communication
policies, as well as the management
of relations with key stakeholders.
The Code combines corporate
culture issues with an approach to
risk management, internal audit, and
compliance management processes
at the Group level.
On the other hand, ’The Grupa Azoty
Group’s Code of Ethical Conduct’
specifies the standards for the conduct
of business, to be shared by all Grupa
Azoty Group employees without
exceptions. A special focus is placed
on building proper and transparent
relations with customers, suppliers,
shareholders, the local community,
and the natural environment.
The Code also discusses proper
behaviour in the event of a conflict
of interest. The key part of the Code
focuses on the fundamental ethical
values by which the Grupa Azoty
Group is guided.
The core values of the
Grupa Azoty Group are:
■■
efficiency,
■■
professionalism,
■■
cooperation,
■■
respect,
■■
transparency.
37
The provisions of the Code refer
to the risk of corruption and breach
of business secrets, as well as the need
to protect confidential information.
The Code categorically condemns
and prohibits any forms of mobbing
and discrimination on the grounds
of race, ethnicity, religion, sexual
preference, age, or gender. It also
explicitly provides that the Group
companies must remain apolitical
and must not support any political
parties, at the same time respecting
the worldviews of their employees
and prohibiting discrimination on 
the grounds of ideology. In addition,
the Code prohibits anything that may
harm the reputation of any person,
including the spreading of false
information about other employees
and the Group (rumours). What
is important, the Code prescribes
procedures to be followed
by employees who suspect a breach
of the standards of ethics or who have
found themselves in a situation which
constitutes or may lead to a conflict
of interest (which must be reported
to immediate superiors or the
Ethics Officer).
The Code is available in traditional
paper form at the Group companies
and in electronic version at www.
grupaazoty.com (in Polish, English
and German). The person responsible
to the Management Board for the
effective implementation of the Code
is the Ethics Officer. The Group’s
management declares that all reported
breaches of ethical standards will be
carefully investigated.
Given that the Code was formally
adopted in 2014, it was not possible
to record any suspected breaches
of the Code reported in 2013. It should
be noted, however, that in 2013 the
Grupa Azoty Group identified no
practices showing signs of corruption.
No action was brought to court against
the Grupa Azoty Group on the grounds
of alleged corrupt practices, nor were
there any instances of refusal to renew
a business contract because of alleged
corruption, or any cases of dismissal
of a staff member on the grounds
of such unethical behaviour.
38
2
Responsible partner in business
39
The market has long
stopped being just
a square downtown.
Today the market
is an open space,
where vastly different
elements and
energies interact.
Only the best
are able to read
its signals.
40
integrated
integratedreport
report| |2013W
2013
Mar ke t ov erv i e w
The flagging demand for melamine
in Europe, coupled with higher
supply of melamine produced with
cheap gas, is also an unfavourable
trend. At the same time, increased
processing capacities for urea used
in melamine production in the
fertilizer industry have resulted
in intensified competition and
a noticeable decline in melamine
prices around the world.
2013 saw not only growing
competitive pressures on the national
and international markets where
the Grupa Azoty Group’s products
are sold, but also many changes in our
business environment; as a result,
2013 proved to be a challenging year
for most key market players around
the world. Low prices, combined with
high prices of selected feedstocks,
put a cap on profit margins, which
ultimately turned out to be lower
than in the preceding year.
Trends observed on the caprolactam
market are also far from being
favourable. The expansion
of production capacities in Asia,
mainly in China, subsequent to 2012
has depressed the product prices;
the situation further deteriorated
following a temporary decline
in demand for polyamides (produced
from caprolactam) on the back
of the general economic situation
worldwide. Oversupply of ammonium
sulfate (a by-product of caprolactam
production), caused by the larger
output of caprolactam, may lead
to price erosion also for this product.
From our perspective, a significant
development was the progressing
consolidation of the fertilizer
distribution market in Poland.
Other noteworthy trends included
higher supply of fertilizers produced
with cheap gas originating from
countries neighbouring the EU,
and the growing manufacturing
capacities in the sector, which have
led to intensified competition in the
fertilizer markets.
One of the factors with a bearing
on the Company’s competitive
position on the domestic and f
oreign markets is also the increasing
liberalisation of trade in the
European Union. The Polish market
is still protected by import duties;
however, the lifting of customs duties
on Ukrainian nitrate as of July 2012
could further intensify competition
in this product segment.
The European Commission has
begun an analysis of the
consequences of expiry of the antidumping duties on Russian nitrate.
It means that the duties, which were
to expire on July 13th 2013, will remain
effective at least until the end of the
proceedings, which may still continue
for up to 15 months. After completion
of the review, the Commission will
propose that the duties be either
maintained for another five years,
or be lifted.
41
Fer t i l i z er mar ke t
In 2013, the fertilizer market was
affected by the low sentiment
in agriculture, caused by sagging
crop prices. The price decreases were
attributable to high grain harvest
forecasts both in the European Union
and globally. As a result, 2013 saw
a significant drop in the profitability
of applying yield drivers, which
adversely affected their sales, despite
lower prices. Producers of fertilizers,
including nitrogen fertilizers,
remained under pressure in the first
half of the year as farmers found
nitrate fertilizers too expensive.
The price level was additionally
affected by delayed payment
of subsidies and expected reduction
in gas prices in Poland. Towards the
end of the year, fertilizer producers,
including the Grupa Azoty Group,
announced considerable price cuts.
pressure on nitrate fertilizer prices.
The price of ammonium nitrate,
calcium ammonium nitrate, and
ammonium sulfate also declined
noticeably. In particular, the decline
in prices of ammonium sulfate was
driven by higher sulfate production
capacities, for instance in Germany
(DOMO Leuna) and Spain (UBE),
accompanied by the increasing
popularity of coarse-grained sulfate
manufactured by compacting
in Lithuania and Turkey.
Price reductions were also seen
in the case of ammonia, even though
producers from Ukraine, Trinidad,
Algeria, Egypt, Libya, and Qatar
reduced their ammonia production
volumes. In Poland, the demand for
NPK fertilizers was also relatively
low. Moreover, throughout the year
Polish manufacturers had to face
competition from attractively priced
NPK fertilizers from Russia, Lithuania
and Belarus.
A steep fall in the prices of urea,
which emerged as a popular
substitute for nitrate fertilizers, put
Pl a s t i c s
Benzene and phenol are the key
feedstocks in the production
of plastics. As far as benzene
is concerned, the market in 2013
was unstable, with periodic
shifts in supply and demand and
speculative transactions.
The market’s available benzene
volumes were in constant decline.
The caprolactam market depends
heavily on demand for polyamide and
cost of raw materials linked to crude
prices. In 2013, caprolactam prices
were driven by volatile benzene
prices and the growing production
capacities in China, which led
to oversupply and lower demand
for the feedstock.
The benzene market and price
forecasts had a strong impact on
the phenol market, making
it unstable. Europe continued to be
affected by oversupply, and the
largest European manufacturers
were forced to temporarily reduce
their phenol output.
Although the polyamide 6 market was
stable in 2013, construction of new
production units in Asia puts it under
significant stress, as it may lead
to lower exports to the region, paired
with higher imports of Asian-made
polyamide 6 to Europe.
42
Ch em i c al s
2013 saw a slight increase in demand
for hydrogen peroxide.
The beginning of 2013 saw rising
propylene prices, which was
a consequence of very high crude
oil prices. The trend later reversed,
and propylene prices declined
in parallel with a drop in crude prices.
August and September saw another
increase in prices.
Global titanium white prices remained
at low but stable levels in 2013.
In the US and Europe, which are the
largest consumers of the product,
demand was limited as a result of the
persistent weakness of the paints,
varnishes, plastics, and automotive
industries. Lower demand was also
recorded in China (30% of titanium
white’s global output), which was
attributable to a decline in consumer
goods exports.
Given the adverse market conditions,
demand for key OXO alcohols
(2-EH and n-Butanol) was satisfactory,
and for the most part allowed product
prices to be adjusted proportionately
to feedstock prices.
On the other hand, sulfur prices
declined by 26% on average in 2013
vs. 2012. The decline was attributable
chiefly to the situation on the
phosphate fertilizers market and the
increased supply of petrochemical
sulfur.
No significant negative shifts
in demand or supply were seen
in 2013. Demand for melamine only
decreased in summer and winter,
which are typically periods of weaker
market activity.
Pow er sec to r
Electricity prices depend on prices
of coal and CO2 emission rights,
as well as cross-border transmission
capacities and electricity demand.
Contrary to predictions, the prices
decreased significantly in 2013.
A considerable decline in coal prices
should also be noted; this was mostly
due to the significant oversupply
which continued throughout the
reporting period. Polish coal
producers kept in line with the global
trend by lowering coal prices.
43
G4-6
G4-12
Su pply chai n
In the area of feedstock supply,
the Grupa Azoty Group’s supply
chain is rather complex, which
is attributable to the broad
range of raw materials needed
to produce chemicals.
The ability to offer different
products depends directly
on the sources of feedstock
supplies. Feedstocks, including
minerals, are not always
available in Poland; they
need to be imported, often
from far-away countries.
The key feedstock categories
used in production, as well
as their countries of origin,
are listed below.
Natural gas
PGNiG continued to be the Grupa
Azoty Group’s key natural gas
supplier, supplying the Group with
high-methane gas under long-term
contracts and nitrogen-rich gas from
local sources. Supplies from other
trading partners were executed under
short-term agreements. In 2013, the
Grupa Azoty Group purchased 84.1%
of its methane-rich natural gas from
PGNiG S.A. and the remaining 15.9%
from other sources.
Phosphate rock
Phosphate rock was supplied mainly
by African producers, including
primarily from North Africa.
The Group is diversifying its
procurement strategy, relying
strongly on its own deposits
in Senegal, which give it a vital
competitive advantage.
The situation in the phosphate
rock market is to a large extent
driven by the situation in the
fertilizers sector.
Ammonia
The Group’s procurement strategy
in this area is based on optimisation
of ammonia supplies. The Grupa
Azoty Group is Poland’s largest
ammonia manufacturer, and operates
several ammonia units. Apart from
satisfying its own requirements,
the Group sells surplus ammonia
to external customers (chiefly
Grupa Azoty Police and Grupa
Azoty ZAK). Effective implementation
of the procurement strategy largely
depends on conditions prevailing
on the fertilizers market. The Group
is the largest consumer of ammonia
on the domestic market and in the
region.
producer of liquid sulfur in Poland
and the CEE). Effective implementation
of the procurement process largely
depends on conditions prevailing
on the fertilizer market, particularly
in its most sulfur-intensive segment
of compound fertilizers. The Group
is the largest consumer of liquid
sulfur on the domestic market and
in the region.
Methanol
Propylene
In 2013, European Union countries
were the main ortoxylene suppliers.
Its prices are largely driven by the
situation on the oil market.
Ortoxylene
In 2013, European Union countries
were the main ortoxylene suppliers.
Its prices are largely driven by the
situation on the oil market.
Potassium chloride
Given the substantial natural
resources and competitive
commercial terms, producers from
Russia and Belarus are the primary
suppliers of potassium chloride.
If necessary, potassium chloride
is additionally supplied from
Western Europe.
Phenol
The Group’s phenol procurement
strategy is based on two primary
sources – Western European and
domestic suppliers. Also, since 2013
regular supplies from Scandinavian
producers have been secured to
supplement the existing sources.
The phenol market in 2013 was largely
driven by benzene contract prices,
which are the principal component
of phenol pricing formulae.
Sulfur
The Grupa Azoty Group’s sulfur
procurement strategy is based
on optimisation of petrochemical
sulfur supplies to the Group
companies and on supplementary
deliveries from the recently acquired
Grupa Azoty SIARKOPOL (the leading
44
Since Poland is not a methanol
producer, the entire domestic
demand is covered from imports.
Offering competitive prices and
convenient logistics, suppliers in Russia
are the key sources of methanol for
the Group’s plant in Tarnów, with CEE
manufacturers used as supplementary
sources.
Benzene
Benzene is sourced chiefly from
domestic and CEE suppliers.
After the acquisition of Grupa
Azoty Puławy, the Grupa Azoty Group
is by far the largest benzene consumer
in Poland and one of the largest in the
region, which gives it considerable
competitive edge. The caprolactam
and polyamide markets are not
the largest consumers of benzene
as feedstock, which makes the price
of the chemical sensitive to movements
in other markets as well, including the
ethylbenzene market.
Electricity
The Group purchased electricity from
a few suppliers which trade with large
customers: PGE S.A., TAURON Polska
Energia S.A. and ENEA S.A. It was
possible to negotiate competitive
contractual prices and terms thanks
to the procurement strategy adopted
by the Group, and in particular the
procurement scale.
A chemical concern,
like a plant,
needs minerals,
water and air.
A plant can simply
draw them from
the world.
We forecast,
calculate and plan
our needs – so we can work
calmly and effectively.
45
G4-8
G4-4
MARKET PRESENCE
Long-term contracts
for the supply of fertilizers
to the US market
The Grupa Azoty Group’s
business is divided into the
following five segments:
■■ Agro
Fertilizers, ■■ Plastics,
■■ Chemicals,
■■ Energy,
Agro Fertilizers
■■ Other Activities.
56.7%
Fertilizers are the key product sold
in the domestic market. Exports
to the EU are mainly plastics,
OXO alcohols and plasticizers.
In Asia, key products include OXO
alcohols and caprolactam, whereas
fertilizers constitute the bulk
of South American exports.
The relatively unstable market
environment in 2013 had a stifling
effect on margins. The instability
was driven by poor sentiment
in the agri sector and high prices
of crude oil, which − together with
rising pressures from competitors
in China − had an adverse impact
on the caprolactam market.
This was compounded by low
demand for titanium white,
caused by a slowdown in the
market for paints, varnishes
and plastics.
Plastics
14.9%
Chemicals
24.3%
Other Energy
Activities 2.7%
1.4%
Poland
55.4%
Other EU countries
22.3%
Germany
9.5%
The challenging global market
environment confirmed the
effectiveness of the management
model we have adopted − the
Group’s consistent consolidation
efforts brought meaningful
synergies, translating into
increased efficiency.
South America
3.7%
Asia
5.6%
Other Europe
1.6%
Africa
1.3%
Our successful initiatives also
resulted in new long-term contract
wins, including in South America.
46
In early November 2013, Grupa
Azoty Police signed commercial
contracts with Nitron International
Corporation, USA, for the supply
of fertilizers. Thanks to its
commercial ties with Nitron,
the Grupa Azoty Group has already
established a presence in the
South American markets for
ammonia fertilizers (notably
ammonium sulfate). With more
products on the supply list, the
partners stand a good chance
of strengthening their business
alliance in the long term.
The largest contract for the sale
of compound fertilizers runs
from January 1st 2014 until
December 31st 2016, and its full-term
value is estimated at around 
PLN 607.9m, VAT-exclusive.
The Grupa Azoty−Nitron trade
cooperation has continued for
two years now, and the value
of transactions made between
the partners in the last 12 months
reached PLN 1.03bn, VAT-exclusive.
In early December 2013, as part
of its contract negotiations for
the coming years, Grupa Azoty
entered into a series of trade
agreements with Comexport of 
São Paulo, worth a total of 
PLN 360m. The commercial
relationship with the Brazilian
partner, which enjoys strong
reputation in the home market,
dates back 30 years.
The contracts for the sale of
ammonium sulfate produced
by the Tarnów and Puławy plants
as well as compound fertilizers
produced by the Police facility, are
effective for three years, starting
from January 1st 2014.
MARKET PRESENCE
Grupa Azoty is:
Partnerships in raw
material sourcing
# 1 in inorganic fertilizers
# 1 in multicomponent fertilizers
# 1 in nitrogen-sulfur fertilizers
# 1 in nitrogen fertilizers
On January 16 2014, Grupa Azoty S.A.
and KGHM Polska Miedź S.A. signed
a Letter of Intent on joint commercial
undertakings.
th
among Polish fertilizer producers
The relationship may include
phosphogypsum processing,
acquisition of potassium chloride
deposits abroad, securing access
to natural gas reserves, construction
of a polygeneration power plant,
and phosphate rock exploration and
production.
# 1 in polyamides
# 1 in OXO alcohols and plasticisers
# 1 in titanium white
# 1 in melamine
among Polish producers of plastics,
OXO alcohols, pigments, and melamine
# 3 in inorganic fertilizers
# 2 in multicomponent fertilizers
The signatories anticipate that the
collaboration may involve commercial
partnership (based on specific
agreements or contracts), joint
undertakings (e.g. formation of joint
ventures), and equity investments.
Given today’s challenging market,
initiatives aimed at securing supplies
of strategic raw materials and
feedstocks rank high on the
Group’s agenda
among Europe’s fertilizer producers
# 2 in melamine
# 5 in plasticisers
# 5 in polyamide-6
# 5 in OXO alcohols
among Europe’s producers of plastics,
OXO alcohols, and melamine
Bałtycka Baza Masowa Sp. z o.o.
Logistics
NAVITRANS sp. z o.o.
GZNF Fosfory
Logistics
Multicomponent fertilizers
Grupa Azoty Police
Multicomponent fertilizers (NPK, NP)
Nitrogen fertilizers (Mocznik)
Nitrogen-sulfur fertilizers (NS)
Titanium white
Gdynia
Gdańsk
Police
Plastics (PA6)
Grupa Azoty Puławy
Nitrogen fertilizers (AN, RSM, UREA)
Melamine
Caprolactam
Guben
Puławy
Grzybów
Kędzierzyn-Koźle
Chorzów
Tarnów
Grupa Azoty Siarkopol
Sulfur-based products
Nitrogen fertilizers (AN, CAN, UREA)
Nitrogen-sulfur fertilizers (CAN)
OXO alcohols
Plasticisers
NPK
Stearin
Grupa Azoty S.A.
Plastics (PA6, POM, modified products)
Caprolactam
Nitrogen fertilizers (AN, CAN)
Nitrogen-sulfur fertilizers (ASN, AS)
47
The Earth
is a complex organism.
It gives us various gift.
We try to give it
everything it needs
to feed us.
This is why
we produce fertilizer
in every shape and form.
48
MARKET PRESENCE
Agro Fertilizers
SEGMENT’S FUTURE
The segment represents the largest
share of the Grupa Azoty Group’s
product portfolio by value. In 2013,
its revenue totalled PLN 5,565,074
thousand and accounted for 56.7%
of the Group’s total revenue. New
improved formulae are regularly
added to the segment’s product mix.
In the period covered by the strategy,
the mineral fertilizers segment, which
is of key importance to the Group’s
operations, will be an area of the
most intense activity. The Group
is consistently expanding its product
range with new liquid and specialist
fertilizer products and other products
and services for the agricultural
sector.
Our principal goal is to promote
rational use of fertilizers to enable
environmentally-friendly production
of food that is safe to people.
The Company intends to increase
its manufacturing capacity for
mechanically granulated nitrate
fertilizers. Also, ammonia lines will
be upgraded, mainly to reduce
energy-intensity of the manufacturing
processes, but also to generate
cost efficiencies and environmental
benefits.
One initiative taken to that end was
the launch of a line of fertilizers with
a sulfur content. Such fertilizers are
more effective in crop production
than traditional formulae, which
was made possible by several
years of complex research and
development work (for more
information, see ’Customers’).
The segment’s product mix comprises:
■■
Urea: PULREA®, mocznik.pl®,
■■
Calcium ammonium nitrate:
Salmag®, Salmag z borem®, Salmag
z siarką® Saletrzak 27 standard,
Saletrzak 27 standard with boron,
■■
Ammonium nitrate: PULAN®,
Zaksan™ (Kędzierzyńska Saletra
Amonowa),
■■
Nitrogen-sulfur fertilizers:
Saletrosan®26, POLIFOSKA®21, AS21
ammonium sulfate, PULSAR®,
■■
Compound fertilizers (NPK, NP,
PK): POLIFOSKA®, POLIDAP®,
POLIMAG®, AMOFOSKA® and
(enhanced superphosphate
fertilizer),
■■
liquid fertilizers: Pulaska®, ureaammonium nitrate solution (RSM®),
urea-ammonium nitrate solution
with sulfur (RSM®S). Additionally,
ammonia and nitric acid, which
are key semi-products in the
manufacture of nitrogen fertilizers,
are classified within this segment.
49
Plastics are
something
people have created
and, at the same
time, something
that can be used
to create much more
– shapes, objects,
surfaces.
Thousands of things
which surround us.
Chemistry is not just
the science of joining
atoms – it is also
the science
of the freedom
to create.
50
MARKET PRESENCE
Pl astics
In 2013, revenue in the Plastics
segment was PLN 1,466,548 thousand
and accounted for 14.9% of the Grupa
Azoty Group’s total revenue.
More than 90% of the segment’s
revenue was derived from foreign
markets. Our own caprolactam
production capacities in Tarnów
and Puławy provide a secure
ource of feedstock supply for the
segment’s polyamide production.
Plastics production is located
in Puławy, Tarnów and Guben,
Germany. In modified plastics,
the segment’s central location
is the Tarnów plant, which houses
all compounding lines and the
plastics laboratory, providing R&D
resources and services to the entire
Plastics segment.
■■
polyamides (PA 6 and modified
engineering plastics): Tarnamid®
and Alphalon®,
■■
polyoxymethylene (polyacetal)
(POM and modified engineering
plastics): Tarnoform®,
■■
plastics intermediates: caprolactam
and cyclohexanone,
■■
modified plastics based on
PA66, PBT, PP and other plastics:
Tarnamid A, Tarnodur, Tarnoprop.
SEGMENT’S FUTURE
In the period covered by the strategy,
polyamides, polyoxymethylene and
modified plastics will remain the key
elements of the Group’s engineering
plastics portfolio. Furthermore,
the Group is planning to increase
its engineering plastics production
capacity and further diversify the
product range in 2013−2020.
51
MARKET PRESENCE
Chemicals
Revenue in this segment reached
PLN 2,385,331 thousand, up 59.6%,
and represented 24.3% of the
Group’s total revenue.
SEGMENT’S FUTURE
In the period covered by the
strategy, caprolactam, melamine,
OXO alcohols, plasticizers,
ammonia, concentrated nitric acid,
titanium white and urea (used for
non-fertilizer purposes) will be
the core constituents of the Group’s
chemical product portfolio.
The product portfolio will be
diversified, with a particular
focus on speciality chemicals.
Caprolactam and polyamide 6 output
will be balanced and next-generation
plasticizers will be added to the
segment’s product mix.
The key commercial products of
the Chemicals segment include the
Rednox lines: PULNOx®, NOXy™
(AdBlue®), Likam®, as well as
melamine, hydrogen peroxide,
industrial gases, and OXO products
(OXO alcohols, plasticizers):
OXOPLAST®, sulfur and titanium
white.
Rednox: PULNOx®, NOXy™
(AdBlue®), Likam®
Plant upgrade projects are also
in the pipeline, focused on improving
the energy efficiency and, as
a consequence, reducing chemicals
production costs and environmental
impact.
The Rednox line brings together
products derived from special
solutions based on urea and
ammonia. It is worth noting that
today urea is becoming widely
applied outside agriculture.
When used for flue gas and
exhaust gas treatment applications,
it helps reduce the noxious
emissions of nitrous oxides
generated in fuel combustion
by process plants and motor
vehicles. Thanks to urea-based
additives, SCR-featuring diesel
engines are able to meet the
current emission standards.
52
In a world of chemistry,
chemicals are
a currency whose value
is only clear to those
in the know, as only
they realize what goods
it can purchase
– what aims it can
achieve.
These aims can be
as numerous
as chemicals. This is why
we want to produce
them in ever growing
varieties.
53
Energy independence
works on every level and at every
scale. We are chemists. We know
how to create all sorts of things.
This includes energy and heat
– for ourselves and others.
54
MARKET PRESENCE
Energy
The Grupa Azoty Group owns power
generation assets, but it also buys energy
under supply contracts with third parties.
The Grupa Azoty Group resells electricity,
heat, water and natural gas to customers
connected to its distribution systems.
In 2013, revenue in the Energy segment
was PLN 265,516 thousand and accounted
for 2.7% of the Group’s total revenue.
SEGMENT’S FUTURE
In 2013−2020, the existing coal-powered
co-generation facilities will continue
as the main source of heat and electricity
for the production plants in Tarnów and
Police. They will be regularly upgraded
to reduce their environmental footprint.
In Kędzierzyn-Koźle, after 2015, heat and
electricity will be generated by new units.
Other Activities
In 2013, the segment reported
revenue of PLN 138,554 thousand.
Other Activities include manufacturing
of catalysts used in selected chemical
synthesis processes, as well as in the
production of ammonia, hydrogen
and synthesis gas.
■■
iron/chromium catalysts,
■■
copper/zinc catalysts, and
■■
iron catalysts.
The segment also includes logistics
and specialised overhaul and design
services. It also has come to encompass
resource extraction following inclusion
of new companies in the Group.
55
There are industries
in which one always needs to
keep an eye on the horizon,
beyond which lies the future.
Chemistry is one of those.
Therefore we invest
in science and education.
We don't know the future.
Nobody knows it.
Whatever it brings, we want
our part in shaping it.
56
G4-EN27
G4-EN19
G4-EN6
EN DMA27-28
The consolidation
of chemical industry
leaders offering specialist
and complementary
competencies represented
by their laboratories gives
the Grupa Azoty Group
significant potential
for growth.
G4-26
I n n ovat i o n an d d e v elo pm en t
Grupa Azoty Group has its own R&D
facilities and also cooperates with
external research institutes, as well
as with Polish and foreign academic
centres. The Group has been improving
its technologies, thereby upgrading
the quality of its products and services.
In the course of R&D works, the Group
has developed effective solutions,
which are now patented
and commercialised.
The Group is also an initiator of and
valuable contributor to a number
of innovative research programmes run
by leading Polish research institutions,
as well as an active partner supporting
the process of education, with many
young scientists preparing their first
scientific projects in cooperation with
the Group.
Academic centres and research institutions
with which the Grupa Azoty Group cooperated in 2013
Grupa Azoty S.A.
Institute of Organic Chemistry,
Polish Academy of Sciences
of Warsaw
Industrial Chemistry Research
Institute of Warsaw
Institute of Electronic
Materials Technology
Fertilizer Research Institute
(currently New Chemical
Syntheses Institute) of Puławy
Warsaw University
of Technology
Wrocław University
of Technology
Cracow University
of Technology
Lodz University of Technology
University of Agiculture
in Krakow
Cracow University
of Economics
Grupa Azoty ZAK
Grupa Azoty Puławy
Maria Curie Skłodowska
University of Lublin
(including a branch in Puławy)
Silesian University
of Technology
Opole University
of Technology
Warsaw University
of Technology
Opole University
University of Silesia
Poznan University
of Technology
University of Wrocław
Institute of Heavy Organic
Synthesis ’Blachownia’
Wrocław University
of Technology
Industrial Chemistry Research
Institute of I. Mościcki
Kazimierz Pulaski University
of Technology and Humanities
in Radom
Institute of Industrial Organic
Chemistry
Lublin University
of Technology
Wrocław University
of Technology
AGH University of Science
and Technology
Institute for Chemical
Processing of Coal
Wyższa Szkoła Biznesu –
National-Louis University
State Higher Vocational School
in Tarnow
AGH University of Science
and Technology of Kraków
57
Grupa Azoty Police
West Pomeranian University
of Technology, Szczecin
Szczecin University
Maritime University
of Szczecin
West Pomeranian Business
School of Szczecin
Warsaw University
of Technology
University of Warsaw
Warsaw School of Economics
INNOVATION AND DEVELOPMENT
Major joint
research
initiatives
included the
creation of
the Tarnów
Chemical
Technology
Research and
Development
Centre and
the Puławy
Competence
Centre.
THE TARNÓW CHEMICAL
TECHNOLOGY RESEARCH
AND DEVELOPMENT CENTRE
THE PUŁAWY
COMPETENCE CENTRE
In late 2012, the Grupa Azoty Group
companies signed a Letter of Intent
with the Municipality of Tarnów
and the Province of Kraków
regarding the creation of
a research and implementation
unit, the Tarnów Chemical
Technology Research and
Development Centre.
The Puławy Competence Centre
is a networking and information
sharing platform for agribusiness,
agricultural consultants, research
institutions, and business at 
large, bringing together partners
interested in modern and innovative
agribusiness. Therefore, the
Competence Centre is a meeting
place for three different groups:
the academic community, fertilizer
producers, and their customers.
The new research centre will
function as a platform for
cooperation between a number
of entities representing both
industry and science. The goal
of the project is to look for, organise,
develop, and implement most
effective cutting-edge innovations
compliant with the principles
of sustainable development, which
will later be registered with patent
authorities and used commercially.
The project will also involve
cooperation with the International
Centre for Chemical Safety and
Security (ICCSS) based on latest
global chemical industry solutions,
and will promote international
cooperation in that area.
The overriding objectives of the
Puławy Competence Centre are:
■■
to develop and promote the
concept of a modern agricultural
entrepreneur,
■■
to improve farmers’ competence
in efficient management,
■■
to promote soil fertilization
research,
■■
to forge new links between the
worlds of business and science.
The PCC Scientific Council
is composed of nine distinguished
professors specialising in soil
fertilization and soil science,
representing nine Polish universities
and research institutes.
In addition to scientific and research
work, the Puławy Competence
Centre and the Faculty of Agriculture
at the Warsaw University of Life
Sciences (SGGW) have developed
a programme of post-graduate
studies for agricultural technicians
and producers, with a special profile:
’Management of fertilizers and crop
protection products in a sustainable
agriculture system’.
58
JOINT PROJECT OF GRUPA
LOTOS AND GRUPA AZOTY
On December 3rd 2013, the Grupa
Azoty Group and the LOTOS Group
signed an agreement on the future
formation of a special purpose
vehicle to conduct a comprehensive
feasibility study on the construction
of a new petrochemical complex,
to be located in the vicinity of both
Grupa LOTOS’ and Grupa Azoty’s
existing installations.
2013 saw a number of research and
development projects that were part
of the adopted innovation strategy.
■■
state-of-the-art materials,
The two companies also signed
a preliminary agreement with
Polskie Inwestycje Rozwojowe S.A.,
as a potential financial investor
in the project. The investment will
help reduce Poland’s chemical trade
deficit. Under the agreement, Grupa
LOTOS and Grupa Azoty will establish
a special purpose vehicle to run the
project, with project costs (related
to preparation of the feasibility study
and financing of the SPV’s operations)
shared equally between both parties.
Pursuant to a separate agreement,
Polskie Inwestycje Rozwojowe S.A.
will provide expert assistance in the
financial and contractual structuring
of the project.
■■
high value-added specialist
chemicals,
■■
innovative products, including
bioproducts,
■■
specialist mineral fertilizers,
■■
processes reducing the energy
intensity of adopted technologies,
■■
technologies relying on the
synergies with the Group’s byproducts.
earmarked up to 1% of its revenue for
research and development, and has
defined its main research areas, which
include:
For more information on the research
work completed in 2013 by individual
Group companies, please refer to the
annual Directors’ Report9.
Training provided by the Group or
in cooperation with leading Polish
colleges and universities are a crucial
part of the Group’s customer support
system. They combine hands-on and
theoretical training methods and are
open also to prospective customers.
It should be noted that some of
them are fully compatible with
the Group’s strategy consistent with
the sustainable development concept.
9 The document ’Directors’ Report on Grupa Azoty
Group’s operations in the 12-month period ended
December 31st 2013’ is available at http://tarnow.
grupaazoty.com/pl/relacje/raportyr.
59
grupa Azoty s.a.
The research work carried out in
2013 followed from the Group’s
R&D strategy and focused both
on optimisation of the Company’s
key production lines and on new
directions for development.
The most important R&D initiatives
in 2013 included:
■■
■■
optimisation and enhancement
of the fertilizer manufacturing
process through appropriate
selection of inorganic additives and
anti-caking agents improving the
physical and chemical properties of
the fertilizers,
■■
engineering new varieties of
modified plastics, with the use
of various additives enabling
specialist application of the
plastics, e.g. in the automotive
industry; also improving quality of
polyoxymethylene,
■■
research into reduction of
caprolactam manufacturing costs
and improvement of the product
quality through optimisation.
In 2013, Tarnamid® HF (high flow)
developed as part of the Company’s
R&D efforts received a distinction in
the Materials and Aids for Plastics
Processing category at the 17th
PLASTPOL International Plastics and
Rubber Processing Fair in Kielce.
assessment of effectiveness and
benefits of using the Grupa Azoty
Group’s fertilizers in agriculture,
Grupa Azoty Puł awy
GZNF Fosfory Sp. z o.o., a subsidiary
of the Grupa Azoty Puławy Group,
conducted research activities
on manufacture of new phosphate
and phosphate-potassium fertilizers
with sulfur and calcium (P CaS and
PK CaS). GZNF Fosfory Sp. z o.o.
also commenced work on alkaline
(ammonia-based) absorption of sulfur
compounds from the sulfuric acid
unit with a view to manufacturing
ammonium sulfate for use in compound
fertilizers produced by the company.
In 2013, in line with the development
policy of Grupa Azoty Puławy, two
key projects were completed:
■■
Construction and commissioning
of a flue gas desulfurization unit
at the CHP plant. The unit employs
an innovative method of washing out
sulfur compounds with water solution
of ammonia and produces ammonium
sulfate, commonly used as nitrogen
fertilizer with sulfur content (for more
information, see ’Air emissions’ and
’Environmental protection projects’).
■■
Construction and commissioning
of a manufacturing unit for new
liquid fertilizers based on urea,
ammonium nitrate solution (RSM®),
and ammonium sulfate. The project
expanded the company’s fertilizer
product range.
60
Grupa Azoty ZAK S.A.
In the area of fertilizer production,
the company is working on new
compound fertilizers and on launching
the production of liquid fertilizers.
In 2013, the company’s R&D activities
focused on search for new products
to expand the product range, as well
as potential technical and technological
upgrades to reduce energy consumption
in the manufacture of key intermediates.
Various approaches to reducing
energy consumption in the
manufacturing of key intermediate
products (primarily ammonia) are
also being analysed. The company
seeks to improve technological
reliability of manufacturing processes
for key intermediate products used
in fertilizer production.
In the OXOPLAST Business Unit,
R&D initiatives were focused on new
types of non-phthalate plasticizers
and potential non-alcohol products
of butyraldehyde (intermediate
product of OXO synthesis)
processing. Regular manufacture
of the OXOPLAST OT plasticizer was
launched, while efforts to increase its
output continued. The Grupa Azoty ZAK
Group continued research activities
geared towards expanding the
offering of non-phthalate plasticizers,
with a particular focus on bio-based
plasticizers.
Grupa Azoty Police
The company also researched prospects
for utilising neutralised decomposition
residue from the titanium white
manufacturing processes. Other R&D
efforts involved the use of iron sulfate
monohydrate to produce ammonium
sulfate and solid-state iron compounds
solution (for more information, see
’Environmental protection projects’).
In 2013, the company’s R&D activities
focused primarily on developing
new and upgrading the existing
process lines.
Other projects were also carried out
to bring individual production units
in line with the requirements of the
IED Directive on industrial emissions
(integrated pollution prevention and
control). Those efforts covered the
fertilizer, phosphoric and sulfuric
acid, titanium white, urea and
ammonia production units, as well
as the power unit.
In 2013, the energy audit of the
Ammonia Plant was completed.
The audit was to assess the plant’s
current energy efficiency and outline
changes necessary to optimise the
energy consumption.
The most important R&D initiative
was the work on replacing the
dihydrate method of producing
phosphoric acid with the
semihydrate-dihydrate method.
Work also continued on analysing the
technical possibilities of manufacturing
the organic compounds referred
to above.
61
Grupa Azoty has become
a great company.
Still, we want to stay
close to our clients
– like a rural store,
where everyone knows
your name, and the sales
assistant knows
what everyone needs.
At such a scale of
operations, this isn't
easy. We are constantly
seeking out new ways
for greater mutual
communication
and understanding.
62
CUSTOMER RELATIONS
Therefore, the Group’s ambition
is to be not only a producer and
supplier of fertilizers, but also
a trustworthy partner that cares
for farmers, knows their needs and
expectations, and even meets them
halfway by offering more effective and
environmentally-friendly products.
To that end, we do not only sell our
products but we also offer end-to-end
support in effective crop fertilization.
Our mission is to provide assistance
and advice to farmers and to keep
a watchful eye on the entire process
of fertilizing, from the conceptual
stage in a laboratory up to fertilizer
application on the field.
FREE, PROFESSIONAL
ASSISTANCE FOR FARMERS
The Grupa Azoty Group has launched
an expert knowledge-sharing
platform for farmers, available
at www.nawozy.eu, which is devoted
entirely to fertilizer products and
crop fertilization processes.
Registration and unlimited access
to the content are free of charge.
The website offers:
■■
Expert articles,
■■
Practical fertilization calculators
and schedules,
■■
Fertilizer-related consultations,
including an opportunity to ask
questions to experts,
■■
Unlimited access to special weather
forecasts for farmers to facilitate
the fertilization process,
■■
Access to the database
of agricultural produce prices.
Users may also obtain telephone
numbers to agricultural experts
in their region, and contact them
when they are in need of consultation.
Furthermore, the website presents
updates from the Grupa Azoty Group,
combined with expert knowledge
provided by the Institute of Soil
Science and Plant Cultivation (IUNG)
of Puławy and the Fertilizer Research
Institute (INS) of Puławy. The Group
has also prepared a ’Fertilization
Manual’ for farmers (Polish:
’Vademecum nawożenia’).
The traditional paper-form magazine
’AGROlider’ is a valuable supplement
to the website, as a reliable source
of knowledge on the fertilizer and
agricultural market.
63
G4-PR1
The development strategy adopted
by the Grupa Azoty Group is that
of a leader which shapes the market,
sets trends, and defines standards
of conduct. The position of a market
leader entails responsibility. This
is especially true in the fertilizers
market, where the application
of fertilizer products involves
certain opportunities for and threats
to sustainable development. To face
these challenges, fertilizer producers
must stay in close contact with
farmers.
G4-26
PR DMA1
SUSTAINABLE DEVELOPMENT IN AGRICULTURE
In the context of fertilization, we
must always remember that the key
to success is a seemingly obvious
fact – it is not about applying a lot
of fertilizers but rather about applying
them in a rational manner. Nowadays,
the problem of inappropriate
application of fertilizers is one of the
key challenges to global sustainable
development. Irrational soil
fertilization disturbs the biological
balance with a negative effect
on biodiversity.
Precision fertilization technologies,
which are custom-fitted to a given
field and crop, are therefore gaining
in importance. The optimum solutions
are selected depending on a number
of factors, including soil type, soil
acidity, time of year, and crop type.
The Grupa Azoty Group, as the
market leader, bears responsibility
for maintaining a constructive
dialogue. On the one hand, this
involves higher R&D spending to 
make sure that we offer safe products
of ever higher quality; on the other
hand, we need to educate farmers,
make them aware of new challenges
and enhance our consultancy services.
The success of the Grupa Azoty Group,
just as the success of individual
farmers, will depend on the know-how
and application of state-of-the-art
technologies; therefore, the alliance
between business and science and the
development of a modern educational
system is becoming increasingly
important to the Group. To that
end, we need to involve the entire
agricultural community in our R&D
efforts, and the Puławy Competence
Centre fits perfectly with this strategy.
CUSTOMER RELATIONS
SUSTAINABLE DEVELOPMENT IN AGRICULTURE
’ENVIRONMENTAL
DEVELOPMENT TRENDS
IN THE CHEMICAL SECTOR’
SCIENCE – BUSINESS
– AGRICULTURE
In May 2013, the 17th ’Environmental
Development Trends in the Chemical
Sector’ conference was organised
by the Grupa Azoty Group and
the Tarnów Branch of the Polish
Association of Chemical Engineers.
The event brings together the
entire Polish chemical sector and
is addressed to representatives
of chemical companies, the scientific
community, as well as central and
local government authorities.
On November 21st 2013, the third
edition of the ’Science – Business –
Agriculture’ conference was held at the
Puławy Science and Technology Park.
The conference is organised by the
Puławy Competence Centre under
the honorary patronage of the Polish
Ministry of Agriculture and Rural
Development, and Fertilizers Europe
(European Fertilizer Manufacturers
Association, which brings together
the European chemical industry
leaders).
The conference was attended
by creative people with a strong
focus on the development of new
materials and technologies, also
from recyclable waste, who also
promote social and environmental
responsibility in a time of raging
consumerism and who never forget
the possible consequences in their
pursuit for innovative solutions.
Invitations to participate
in the conference were sent
to representatives of the agricultural
science community, government
agencies, agricultural producers
and their trading partners, as well
as leaders of the agricultural
chemicals research from all
academic centres in Poland.
The conference addressed different
aspects of the fertilization process,
including the system of fertilization
recommendations vs. the agricultural
practice, application of precision
agriculture (or precision farming)
methods, as well as trends
in fertilization technologies.
Therefore, the focus was not only
on new environmentally-friendly
fertilization methods, but also
on environmental trends in chemical
materials and chemical production,
green nanotechnology, and the
application of biological processes
to industrial waste water treatment.
64
CUSTOMER RELATIONS
Our professional sale and technical
support services are also a very
important element in developing
and maintaining successful customer
relations. The Grupa Azoty Group
is engaged in market research
projects to monitor customer
satisfaction as accurately as possible.
In the past, most of those projects
were implemented separately
by individual companies, using
a wide range of different tools.
However, with the ongoing
integration of our activities we are
able to develop the most effective
approach based on existing good
practices of individual companies.
The most recent customer satisfaction
survey was held in September 2013.
Customers evaluated aspects related
to products, packaging, customer
service, organisation of deliveries,
terms of business, complaint
procedures, as well as promotional
and advertising activities. In the case
of fertilizers, customers assigned
the highest score to the quality
of customer service and
information materials, and,
most importantly, to the technical
quality of products. In plastics,
the technical quality of products,
timely delivery, and organisation
of customer service scored best.
The customer satisfaction survey
covered products supplied by 
Grupa Azoty S.A. and Grupa Azoty ZAK.
Free professional support
to plastics processing companies
At www.e-plastics.eu, the
Grupa Azoty Group has launched
a website devoted entirely to plastics
and their processing, as well as the
latest achievements, trends, and
developments in the plastics business
and new suggested applications
of plastics. The website allows
access to detailed parameters
of plastics, includes a search engine
which can be used to search for
a product by its name, physical and
chemical parameters, or processing
characteristics, as well as an advanced
functionality for comparing products.
Upon registration, users gain access
to specialist materials, may consult
their technical consultants and
account managers, place orders,
monitor invoices and payments,
access product certificates and
complete product documentation,
and track orders to check the current
location of dispatched products.
Grupa Azoty Puławy, which has
only recently joined the Grupa
Azoty Group, runs its own customer
satisfaction monitoring projects
on an annual basis. Customers
give their feedback on a number
of aspects, including fertilizer quality,
packaging quality and available
packaging options, availability
of products, timely delivery,
as well as work of the customer
service personnel (in terms of the
competent and professional
approach, politeness, speed
of service, and post-sale support).
At Grupa Azoty Police, customer
dialogue is approached on an 
end-to-end basis and research
tools are adjusted to specific
customer categories. For example,
customer satisfaction surveys
among end consumers are based
on the PAPI technique, telephone
interviews, and mailing. Polish trade
agents are usually interviewed
using the PAPI technique, while
foreign trade agents are typically
interviewed by telephone or based
on questionnaires.
65
G4-PR7
The Group strives to build longlasting relations and strong ties
with its customers.
By maintaining close
cooperation with customers
and keeping track of the latest
market trends and activities
of its competitors, operating
professional R&D facilities and
working with universities and
research institutes, the Group
is able to develop products that
meet highest quality standards.
PR DMA7
PR DMA3-5
G4-12
G4-PR5
G4-26
Fostering good rel ations
In 2013, the Grupa Azoty Group
did not report any cases of
non-compliance with applicable
regulations or voluntary codes
of conduct relating to marketing
communications, including
advertising, promotion, and
sponsoring, which would result
in the imposition of financial or other
penalties. This is due to our consistent
marketing communications policy,
including the corporate image and
brand building strategy, which forms
part of the Grupa Azoty Group
Strategy for 2013−2020.
Chemistry serves
to make the world better
and safer. So it, too, must
be safe for the world.
We think about safety
within each product's
entire life cycle – from
sourcing raw materials,
to the production
stage, through to use.
66
Safe t y
The Group’s business requires
compliance with the most exacting
safety standards on multiple levels:
■■
workplace safety,
■■
process safety,
■■
safety of products throughout
their life cycle, from research
and development to final use.
Relevant solutions applied across the
Group ensure appropriate conditions
for the manufacture, storage, transport
and distribution of substances to meet
the natural environment protection
requirements. The Grupa Azoty Group
companies operate in the chemical
industry and are classified as facilities
with a high risk of a major industrial
accident. Being aware of the possible
consequences of their operations, the
Group companies strive to mitigate
their negative environmental impact.
SAFETY PROGRAMME
Ensuring the responsibility and
safety of production processes
is a fundamental principle of the Group.
Advanced technological solutions
enable the Group companies to actively
engage in efforts aimed to mitigate
adverse impact on the environment,
which are often a source of economic
benefits as well. The companies have
devised and implemented relevant
incident prevention programmes, and
safety matters are subject to regular
reporting.
The Group is engaged in safety
awareness initiatives and is an organiser
of national industry conferences
dedicated to safety. In 2013, the
Company was involved in organising
several such events, including the
conferences on ’Environmental
Development Trends in the Chemical
Sector’, ’Repair and Plant Engineering
in the Chemical Sector’, and ’Industrial
Plant Safety’.
67
OHS is a vital aspect of
corporate social responsibility
of any industrial facility,
particularly in the chemical
sector, whose operations
involve specific risks.
G4-LA8
LA DMA5-8
HEALTH & SAFETY
Each of the four companies covered
by this Report has set up a Health
and Safety Committee, representing
all employees. The compositions and
remits of individual committees are
similar. They comprise representatives
of the employer (delegates from
HR and OHS units and occupational
physicians providing preventive
care to employees) and of the
employees (trade union delegates
and social labour inspectors).
Their responsibilities include
conducting workplace safety
inspections and periodic OHS
assessments, providing opinions
on workplace accident and
occupational disease prevention
measures implemented by the
management boards, formulating
conclusions to improve workplace
safety, and working with the
management boards in the pursuit
of their OHS objectives.
G4-LA7
G4-LA5
OHS management processes in
place at the Grupa Azoty Group
are defined in the Integrated
Management System and they
conform with the PN-N-18001:2004
and BS OHSAS 18001:2007 standards
(see Integrated Management Systems).
At three Group companies,
Grupa Azoty S.A., Grupa Azoty Puławy
and Grupa Azoty Police, the OHS
arrangements made between the
employer and employees are
reflected in the relevant collective
bargaining agreements, and in the
case of Grupa Azoty ZAK S.A. they
are incorporated in the integrated
management system. OHS matters
are also addressed in the dialogue
between the management boards
and trade unions.
Given the nature of the Group’s
processes, our employees are exposed
to risks related to factors that are
dangerous or harmful to human health.
We make every effort to eliminate or,
if eradication is impossible, to reduce
the risks, providing comprehensive
technical and organisational tools for
collective and personal protection
of life and health.
According to statistics dated as 
at the end of last year, 16 workers
were exposed to excessive noise
at our plants in Tarnów, and 190 cases
of insufficient workplace lighting
were reported. Occupational risk
assessments were carried out for
14 workstations used by 43 staff.
As at the end of the year,
in Kędzierzyn-Koźle four employees
were exposed to noise that
exceeded permitted levels.
In 2013, occupational risk assessment
forms for 123 workstations were
reviewed and updated. Technical
means of eliminating or reducing
occupational risks were implemented
in the case of 17 workstations, while
organisational and personal protection
measures were put in place for all the
123 workstations.
68
At the Puławy facilities, exposure
to dust, noise and high temperatures
was reported for 67, 868, and 118
employees, respectively. Occupational
risk assessments were performed
at 60 workstations (320 workers).
In Police, 621 employees were exposed
to risks and hazards in their work
environment, including to dust causing
pulmonary fibrosis (110 employees),
other dusts (119 employees), a
nd noise (392 employees).
The exposure to risks was eliminated
or reduced to acceptable levels for
38 employees. A total of 535
workstations (1,583 employees)
were subject to occupational risk
assessment, with risk exposures
eliminated or reduced at 185 of them
(603 staff). Technical measures
to eliminate or reduce safety risks
were applied with respect to 101
workstations (389 employees), and
71 workstations (239 staff) were
equipped with additional personal
protection equipment.
HEALTH & SAFETY
New safety enhancement
initiative by Polish chemical
companies
On October 17th 2013, companies
of the Grupa Azoty Group met
with the representatives of other
Polish chemical companies in the
city of Tarnów, where they signed
a declaration of intent to improve
work safety, fire safety and
environmental protection standards
throughout the chemical industry.
Card of Safe Work Leaders
The Central Institute for Labour
Protection has a system of awards
to recognise businesses that operate
effective OHS management systems,
report consistently low accident
and occupational disease rates, and
have successful OHS prevention
programmes in place. They are
honoured with a Gold, Silver or Green
Card of Safe Work Leaders. Grupa
Azoty Group companies are among
the award recipients.
The declaration is an open access
initiative, providing a platform for the
ongoing exchange of experience with
companies outside the Group, in the
realms of work safety, process safety,
and environmental protection. This
complete and systematic approach
to safety inspections is expected
to enhance the existing safety
management systems.
The purpose of the agreement ‘...
is to develop a model for cooperation
in developing process safety, with
a view to reducing the risks that can
potentially lead to major industrial
accidents.’ The signatories all pledged
to share their experiences in process
and work safety and to implement
the Zero Accidents and Failures
prevention programme.
Gold Card recipients:
Grupa Azoty ZAK
(until October 2015),
■■
■■
Grupa Azoty Police
(until November 2014).
Silver Card recipients:
■■ Grupa Azoty S.A.
(until November 2014).
G4-LA6
Part of their joint work will be
to evaluate the feasibility of a new
model for comprehensive operational
safety inspections of production
assets. The new inspection model,
currently in the testing phase,
is based on a series of checklists
(comprising questions concerning
all inspected areas) prepared
jointly by the participating chemical
companies and the Chief Labour
Inspector, Chief Environmental
Protection Inspector and the Main
Headquarters of the National Fire
Service. To check the feasibility
of the Provincial Inspectorate
of Environmental Protection, National
Labour Inspectorate, and State
Fire Service being able to conduct
such comprehensive inspections
simultaneously, the state agencies
and chemical companies together
prepared an ammonia storage
facilities checklist, which has already
been used to conduct inspections
at Anwil Włocławek, Grupa Azoty S.A.,
and Grupa Azoty Zakłady Azotowe
Puławy. Their experience of the pilot
inspections are being discussed
in working group meetings, and will
be used to design the final inspection
model.
69
With a strict approach to workplace
health and safety risks, the reported
injury incidence rate was relatively
low − a total of approximately
100 accidents took place at the
four companies covered by this
Report, with all of them classified
as minor, save for one accident
at the Tarnów facilities. Only one
case of occupational disease
(at Grupa Azoty Police) was identified
HEALTH & SAFETY
Workpl ace safety at Grupa Azoty Group companies
2012
Grupa Azoty S.A.
2013
women
men
women
men
Total workplace accidents
2
15
8
12
Fatalities
0
0
0
0
Severe injuries
0
0
0
1
Minor injuries
2
15
8
11
Total days lost due to workplace accidents
119
668
538
957
Incidence rate
(total number of accidents / headcount × 1,000)
1.0
7.3
3.8
5.7
59.5
44.5
67.3
79.8
0
0
0
0
Severity rate (days lost/number of accidents)
Reported cases of occupational disease
2012
Grupa Azoty ZAK
2013
women
men
women
men
1
9
5
6
Fatalities
0
0
0
0
Severe injuries
0
0
0
0
Minor injuries
1
9
5
6
5
594
330
219
Incidence rate
2.2
8.0
10.7
5.4
5.0
59.4
66.0
36.5
0
0
0
0
70
HEALTH & SAFETY
Grupa Azoty Puławy*
2012
2013
women
men
women
men
8
47
10
50
Fatalities
0
0
0
0
Severe injuries
0
0
0
0
Minor injuries
8
47
10
50
657
1405
408
1287
Incidence rate
10.1
18.9
12.7
20.0
82.1
29.9
40.8
25.7
0
2
0
0
* Grupa Azoty Puławy’s data for 2012 are provided for comparison only (in 2012 the company was not part of the Group
and was not included in its consolidated financial statements for the 12 months ended December 31st 2012).
Grupa Azoty Police
2012
2013
women
men
women
men
2
16
2
10
Fatalities
0
0
0
0
Severe injuries
0
0
0
0
Minor injuries
2
16
2
10
101
916
76
603
Incidence rate
0.9
6.9
0.9
4.3
50.5
57.3
38.0
60.3
0
0
0
1
71
HEALTH & SAFETY
Total for the Group
2012
2013
women
men
women
men
13
87
25
78
Fatalities
0
0
0
0
Severe injuries
0
0
0
1
Minor injuries
13
87
25.0
77
882
3 583
1 313
3 066
5.4
12.7
10.2
11.3
67.8
41.2
52.5
39.3
0
2
0
1
Incidence rate
72
PR DMA1-2
REACH
PRECAUTIONARY APPROACH
The Grupa Azoty Group meets
the requirements set out in the
Regulation (EC) No. 1907/2006
(REACH) concerning the registration,
evaluation, authorisation and
restriction of chemicals.
The Group adheres to the regulations
that require thorough testing for
hazardous properties of all marketed
chemical substances, as well
as introduction of usage rules that
minimise related risks and, in justified
cases, usage restrictions and bans.
The Grupa Azoty Group strives
to comply with the precautionary
principle for the chemical substances
used in its production processes,
including by not using substances
whose properties have not been
sufficiently investigated. If possible,
the Group also relies on substitution
by replacing extremely hazardous
substances with those that
present a lower risk. In the case
of some substances (for instance
cyclohexanone) the classification
criteria applied by the Group are
more rigid than the formal criteria
set out in the CLP Regulation.
In discharge of its obligations
imposed under said regulations, the
Group submitted relevant documents
to the European Chemicals Agency,
containing test results and chemical
safety assessments for each registered
chemical. The safety assessments
of the chemicals entailed a wide array
of tests of their physical and chemical,
toxicological and ecotoxicological
properties.
All the Group’s substances have been
duly registered, with the relevant
documentation kept up to date. The
safety assessments served as the basis
for the preparation of chemical safety
reports, each of them covering the
entire life cycle of a given substance.
DOCUMENTATION
Product Data Sheets and Exposure
Scenarios are in place for hazardous
products (such as fertilizers,
chemicals and monomers), which
provide downstream users with
information on recommended risk
management measures relevant
to the identified uses of individual
substances. If new data or test results
are available for a given substance,
the companies make relevant
adjustments to its registration
documents or classification filings.
G4-14
GR-PR1
Prod u c t s afe t y
PRODUCT CERTIFICATES
The Grupa Azoty Group holds
a number of non-obligatory
certificates for its products, which
attest to their high quality and safety.
For instance, the Puławy facilities are
proud to have product management
standards in place which comply
with the certification requirements
of Fertilizers Europe’s Product
Stewardship Standard certification
programme. The certificate covers
product development, materials
and additives sourcing, production,
packaging, transport, storage,
marketing and sales, and product
application, including support
provided to farmers. Also, select
products have been awarded
the Q quality mark and hold
’EC Fertilizer’ certificates.
73
Grupa Azoty representation on
the board of fertilizers europe
In mid-2013 two Vice-Presidents
of Grupa Azoty were appointed
to serve on the Board of Fertilizers
Europe (FE).
Fertilizers Europe (the European
Fertilizer Manufacturers Association)
represents Europe’s largest fertilizer
manufacturers. Its main objectives
are to educate, analyse and solve
problems related to the manufacture
and use of fertilizers likely to have
an impact on both the environment
and the health of people living in the
EU. Also, FE looks after the interests
of the entire EU fertilizer market
and is responsible for contacts
with international companies
and institutions, being the only
organisation of such standing
to represent the fertilizer industry
before the European Commission.
Apart from Polish companies, its
members include enterprises from
Spain, France, Norway, Lithuania,
Germany, Austria, the Czech Republic,
Hungary, the Netherlands, Belgium,
Romania and Greece.
Chemical substances, especially
those classified as hazardous, may
pose a threat not only in production
or storage but also during transport.
Thousands of trucks carrying various
chemicals travel the roads every day.
In the event of a traffic accident and
related tanker spill, some of these
chemicals may present a real danger
to people and the environment.
The risk can be reduced by 
compliance with very strict road
transportation rules, or by hauling
most cargo by rail, which is a safer
mode of transport than trucks (see
’Transport’).
Carriage of dangerous goods
is governed by stringent regulations
conforming with the ADR
requirements, with day-to-day
compliance ensured by dedicated
specialists.
Spot System of Assistance
in Hazardous Material Transport
AEO
The system aids in recovery from
incidents involving transport
of hazardous materials. It helps
to improve the safety of transport
in Poland, and − in the case of any
incidents − facilitates effective removal
of their consequences by joint effort
and measures of the national rescue,
fire services and SPOT members.
Participation in the initiative
is a voluntary declaration of intent
by its members to provide assistance
in case of emergency.
The system was established in 2000
by the Polish Chamber of Chemical
Industry and a group of chemical
producers, including Grupa Azoty
ZAK S.A. The other members of the
Grupa Azoty Group later joined the
scheme as well. SPOT is a showcase
of industry collaboration and
dialogue.
Transport safety is further enhanced
by the Group choosing systems
of closed tank cars of various
RID classes over road tankers for
shipping chemicals. For safety
reasons, special-purpose tank
cars designed to fit the equipment
in place at the loading and receiving
terminals are increasingly used.
The quality and the resulting safety
of transport services are confirmed
by the Authorised Economic
Operator Certificates held by all four
companies covered by this Report10.
Holders of the certificate benefit
from simplified security and safety
customs clearance and simplified
customs procedures. It attests
to compliance with stringent
requirements in production,
logistics, and transport of goods
(including securing for shipment
and storage).
TRAFFIC ACCIDENTS
No major traffic accidents that
could pose a significant risk
of contamination were reported
in 2013. In total, two road incidents
and one railway incident occurred,
all of which concerned Grupa Azoty
Puławy.
10 The certificates belong to the category ’AEOF
- Customs simplifications/Security and Safety’
and are published on the European Commission
website athttp://ec.europa.eu/taxation_customs/
dds2/eos/aeo_consultation.jsp?Lang=en
74
HIGH STANDARDS
G4-PR2
EN DMA30
G4-EN30
TRANSPORT SAFETY
In 2013, there were no incidents
of non-compliance with regulations
and voluntary codes concerning the
health and safety impacts of products
(understood as incidents leading
to non-compliance with the law or
voluntary codes) resulting in warnings,
or significant fines or penalties.
PRODUCT LABELLING
All packaging contains information
on the contents (name of the
substance or the trade name of 
the product), manufacturer
details (address) and weight.
For instance, fertilizer packaging
contains information required under
Regulation (EC) No. 2003/2003,
including the class and type
of fertilizer, the ’EC fertilizer’
marking (if applicable), the nutrient
content and its form, directions for
use, and safety precautions (the
latter is optional under applicable
regulations). If a fertilizer is marketed
in bulk, an accompanying document
is made, containing all the required
label elements.
For chemical substances and mixtures
classified as hazardous and falling
within the scope of the CLP Regulation
(EC) the disclosure requirements
are broader, with the essential
information that must appear
on a label including: product identifier
(name of the substance and its
identity number), hazard pictograms
and signal words, hazard statements,
precautionary statements, and
information on storage and transport.
SAFETY DATA SHEET
Additional information to be found
in a safety data sheet includes first
aid measures, fire-fighting measures,
accidental release measures,
measures relating to substances
and mixtures, storage information,
personal protection measures
(if applicable), information on 
toxicity and ecotoxicity, and
disposal considerations.
The packaging of feed additives
should also bear a label compliant
with the requirements applicable
to feeds and feed additives
(Regulation (EC) No. 1831/2003),
containing information on 
permitted doses and storage life.
The procedures and responsibilities
regarding the proper labelling
of products are defined in the
internal regulations.
KOSHER PRODUCTS OF
GRUPA AZOTY ZAK S.A.
In July 2013, the company obtained
an extended kosher certificate for
all its existing products and retained
a licence for the certified AdBlue®
product.
On May 14th 2013, the Kędzierzyn plant
was visited by Michael Schudrich,
Chief Rabbi of Poland, who extended
the kosher certificate for all products
made at Grupa Azoty ZAK S.A.
To receive the certificate,
the company first had to satisfy
the requirements set by the
Chief Rabbinate of Poland as the
competent certification body.
One of them was to prepare
a set of relevant documents on 
the technologies, products,
materials and catalysts used,
which were then submitted
for assessment.
With the certificate, Grupa Azoty
ZAK S.A. is able to place its branded
products on any market, including
those which require kosher
attestation. To receive the certificate,
the company had to meet certain
market requirements.
75
HIGH STANDARDS
G4-PR9
The safety and prime quality
of a product must be ensured
throughout its entire life cycle
− not only at the production
stage but also when the product
is actually used. For end users,
such things as appropriate
and clear labelling are of key
importance.
G4-PR4
PR DMA3-5
PR DMA9
G4-PR3
CUSTOMER SAFETY
In 2013, there were no incidents
of non-compliance with
regulations or voluntary codes
concerning product and service
information and labelling,
particularly those which would
result in significant fines, penalties
or warnings. No significant fines
were imposed for non-compliance
with laws and regulations
concerning the provision and use
of products and services.
G4 EN-DMA
ENVIRONMENTAL IMPACT
have a clear formal and legal status
as regards environmental protection
and the requirements imposed by the
Environmental Protection Law, which
sets out the environmental protection
rules as well as conditions for the use
of natural resources in line with the
principles of sustainable development
relating to environmental protection.
The companies carry out their
industrial operations pursuant
to a number of decisions issued
by provincial governors and marshals,
such as integrated permits for the
operation of industrial facilities,
permits to release gases and
dusts into the air, water permits
to discharge sewage to water, permits
for waste generation, permits for
recovery of waste, permits for
collective water intake and collective
wastewater discharge, and permits
to emit greenhouse gases.
The companies operate according
to internal processes and procedures
constituting their respective
environmental management
systems, which aim to limit negative
environmental impacts in areas
such as:
■■
Air emissions,
■■
Water emissions,
■■
Waste management,
■■
Soil contamination,
■■
Social impact,
■■
Use of raw materials and natural
resources,
■■
Other local environmental
concerns.
Drawing on the best practices
of its individual companies, the
Grupa Azoty Group has a unique
opportunity to develop improved
solutions, which it can then implement
and promote across the Group.
This is yet another synergy resulting
from the consolidation.
RESPONSIBLE CARE
Aiming to protect the environment,
participate in the Responsible Care
Programme (Odpowiedzialność
i Troska®). By being involved in
the Programme, the companies
demonstrate their deep and voluntary
commitment to reducing their
environmental impact, improving
working conditions and plant safety,
and to ensuring regular contact
with their business and social
environment11.
11 For more information on the initiatives undertaken
by individual companies under the Responsible
Care Programme, see local supplements to this
Report.
76
Grupa Azoty Police Among
Winners of The 8th Edition of
the ’Green Laurel’ Contest
The ’Green Laurel’ contest
is an annual event organised
by Polska Izba Gospodarcza
Ekorozwój (Polish Economic
Chamber for Eco-Development),
operating under the patronage
of the President of the National Fund
for Environmental Protection and
Water Management, and the Chief
Environmental Protection Inspector
and Chairperson of the Convent
of Presidents of Provincial Funds for
Environmental Protection and Water
Management. Grupa Azoty Police
received the award for its iron sulfate
neutralisation plant.
77
It's good to have trusted
partners. Each of our companies
spent years building a circle
of trustworthy suppliers.
We continue to work with them.
However, as Grupa Azoty,
we have achieved a scale
of operations which makes
it possible to obtain
raw materials on our own
– in Poland and around
the world.
78
FEEDSTOCKS
G4-12
The Grupa Azoty Group’s supply chain
aims chiefly to secure the availability
of appropriate feedstocks.
EN DMA1
KEY RAW MATERIALS USED
The Group’s ability to offer different
products depends directly on stable
supplies of quality feedstocks.
Securing access to deposits
of polyhalite, a sulfate of potassium,
magnesium and calcium, would
be particularly valuable in this
respect, as the mineral could be
used as a source of potassium for the
production of compound fertilizers.
Feedstocks, including minerals, are
not always available in Poland; they
need to be imported, often from
far-away countries rich in mineral
deposits. The consolidation efforts
undertaken over the last year were
geared towards vertical integration
to secure access to certain feedstock
sources (phosphate rock deposits
in Senegal and sulfur deposits
in Grzybów).
The Grupa Azoty Group sources its
key feedstocks from various countries.
Despite its ongoing diversification
efforts, the Group still relies
chiefly on Russia for its natural gas
supplies, while sourcing phosphate
rock primarily from North African
countries, propylene and ortoxylene
from Western Europe, potassium
chloride from Russia, Belarus and
Western Europe, phenol from Poland,
Western Europe and Scandinavian
countries, methanol from Russia and
Central and Eastern Europe, and
benzene from Poland and other CEE
countries13.
In August 2013, Grupa Azoty12 signed
a Letter of Intent to collaborate
with KGHM Polska Miedź S.A.
on joint exploration for mineral
deposits in Poland and abroad,
and on management of recyclable
materials.
12 Gdańskie Zakłady Nawozów Fosforowych
Fosfory, a subsidiary not included in this
Report, was the formal signatory of the
Letter of Intent.
13 For more information on the supply of strategic
feedstocks, see ’Directors’ Report on the
Operations of the Grupa Azoty Group for the
12 months ended December 31st 2013’ (pp. 34–35),
which can be found at http://tarnow.grupaazoty.
com/pl/relacje/raportyr.
79
80
al
0,3%
4,8%
4,5%
1,3%
0,9%
0,2%
Liquid Methanol Benzene
ammonia
Co
Pr
o
a l py l
co h e
ho p
l t yl
Te
re
p
ac hth
id ali
c
3,0%
5,4%
2,8%
2,6%
Sulfur
O
rto
xy
le
ne
Ni
tro
ge
n
2,7%
2,6%
45,4%
45,4%
Fine
coal
2-
e
n
en
ge
yl
xy
op
40,3%
37,7%
Natural
gas
O
Pr
Na
t
ga ura
s l
G4-EN1
4,2%
4,8%
3,1%
1,5%
1,7%
3,3%
11,0%
11,1%
9,6%
9,5%
17,6%
17,6%
21,8%
21,6%
31,0%
31,0%
G4-EN1
FEEDSTOCKS
Raw materials used by
Grupa Azoty S.A.
2012 r.
2013 r.
Phenol Caprolactam
Grupa azoty zak S.A.
2012 r.
2013 r.
FEEDSTOCKS
26,7%
5,8%
5,7%
3,8%
3,4%
3,4%
2,9%
1,9%
1,3%
3,8%
5,4%
18,4%
21,6%
22,8%
30,2%
43,0%
G4-EN1
Grupa Azoty police
2012 r.
2013 r.
Natural Potassium Phosphate Molten
gas
chloride
rock
sulfur
Sulfuric
acid
Titanium
slag
Ilmenite
Fine coal
Natural
gas
Coal
Benzene
0,7%
0,6%
15,0%
14,5%
12,5%
11,3%
73,0%
72,3%
G4-EN1
2012 r.
2013 r.
Sulfur
* Grupa Azoty Puławy’s data for 2012 are provided for comparison only (in 2012 the company
was not part of the Group and was not included in its consolidated financial statements for
the 12 months ended December 31st 2012).
81
ENERGY
remained broadly flat on previousyear levels (down 1.9%), while its
energy intensity, defined as the
ratio of energy costs to production
value, was seen to improve in three
plants (Tarnów, Kędzierzyn-Koźle and
Puławy). However, the ratio rose in
the Police plant (up 5.3%) on the back
of a reduction in production output
which nullified the economies-ofscale effect. This offset the improved
results seen in other companies,
bringing the total intensity ratio close
to previous-year levels, with energy
costs accounting for 7.7% and 7.8%
of production value in 2012 and 2013,
respectively, which represented a
change of 1.3%.
EN DMA3-6
G4-EN3
G4-EN5
For their continued operation, the
Group’s production plants rely on
stable and reliable electricity and
heat supplies. Individual production
facilities have their own CHP plants.
The Grupa Azoty Group takes measures
to improve their energy efficiency
and limit the environmental impact of
power generation, particularly in view
of the fact that coal is set to remain
the prevalent fuel. For several years,
the Group has pursued investments
to upgrade its available production
capacities.
The energy efficiency improvements
achieved by the Group are attributable
to different factors, including regular
upgrade projects and efforts to
reduce the share of energy from
the most expensive sources. Total
energy consumption within the Group
G4-EN3
ENERGY CONSUMPTION WITHIN THE ORGANISATION [GJ]
2012
2013
change
Grupa Azoty S.A.
9 341 094 GJ
9 196 615 GJ
-1,5%
Grupa Azoty ZAK**
7 033 099 GJ
7 559 975 GJ
7,5%
19 391 723 GJ
19 912 500 GJ
2,7%
13 141 894 GJ
11 306 804 GJ
-14,0%
48 907 810 GJ
47 975 894 GJ
-1,9%
Grupa Azoty Police
Total for Grupa Azoty Group
* Grupa Azoty Puławy’s data for 2012 are provided for comparison only (in 2012 the company was not part of the Group and was
not included in its consolidated financial statements for the 12 months ended December 31st 2012).
**Figures for Grupa Azoty ZAK do not take into account cooling generation.
G4-EN5
ENERGY INTENSITY, I.E. ENERGY COSTS TO PRODUCTION VALUE (%)
2012
2013
change
Grupa Azoty S.A.
8,2%
8,0%
-2,3%
Grupa Azoty ZAK*
12,1%
11,5%
-4,9%
Grupa Azoty Puławy**
9,4%
9,0%
-4,2%
Grupa Azoty Police
4,4%
4,6%
5,3%
Total for Grupa Azoty Group
7,7%
7,8%
1,3%
* Figures for Grupa Azoty ZAK do not take into account cooling generation.
**Grupa Azoty Puławy’s data for 2012 are provided for comparison only (in 2012 the company was not part of the Group and
was not included in its consolidated financial statements for the 12 months ended December 31st 2012).
82
A number
of initiatives
contributed
to improved
energy
efficiency
in 2013.
Grupa Azoty S.A.
ENERGY
KEY INITIATIVES TO
IMPROVE ENER GY EFFICIENCY IN 2013
■■ Installation of power inverters at the Central Wastewater Treatment Plant,
Biological Wastewater Treatment Plant and Power Business Unit,
■■ installation of an ammonia compressor at the 6th cooling unit,
■■ upgrade of the K-32 unit to enable recovery of unreacted phenol
and Beckmann rearrangement with reaction heat,
■■ replacement of steam ejectors with a vacuum pump,
■■ upgrade of the cooling ammonia network,
■■ erection of a new hydrogen production plant;
■■ upgrade of the river pumping station (Unit No. 140) ,
■■ upgrade of the industrial water pumping station (Unit. No. 202) providing water
Grupa Azoty ZAK
for general use at the plant and for fire-fighting purposes,
■■ replacement of heating water circulation pump No. 4 at the heating unit (Unit No. 211/1), (apart from the replacement of key equipment, upgrade work also involved
energy-efficient operation of frequency converters);
Grupa Azoty Puławy
■■ replacement of two pumping sets (pump + motor) with new, energy-efficient units,
■■ replacement of 31.5 MVA transformers with 40 MVA units;
Grupa Azoty Police
■■ replacement of motors and lighting systems with more energy-efficient units
■■ change in regulation of the circulating pumps at CHP plant No. 2
■■ switch-over to two OP 230 boilers at CHP plant No. 2 to limit the use
the less energy-efficient OR 32 boilers at CHP plant No. 1
■■ implementation of an energy management system based on ISO 50001.
The investment projects implemented
at the Tarnów plant alone translated
into considerable energy savings last
year, estimated at PLN 9.5m. Thanks
to the upgrade of the pumping
station, Grupa Azoty ZAK’s savings
are estimated to reach 228.73 GJ
annually, while investments at
Grupa Azoty Puławy have reduced its
energy consumption by 10,840 GJ
a year. Grupa Azoty Police saved
some PLN 313 thousand following the
83
replacement of motors and lighting
systems. Additionally, limiting the
use of less energy-efficient boilers
is documented to have reduced the
plant’s costs by PLN 1.4m in the three
winter months only.
ENERGY
SUPPLEMENTARY NON -FINANCIAL INFORMATION
G4-EN3
ENERGY FROM PRIMARY SOURCES (BY ENERGY CARRIERS)
j.m.
Grupa Azoty S.A.
Total consumption
2012
2013
Thermal coal
GJ
7 185 000
8 500 000
Natural gas
GJ
5 500
4 300
Fuel-grade MEK
GJ
209 400
171 700
Process gas
GJ
100 200
53 000
Mazut
GJ
32 900
33 800
j.m.
Grupa Azoty ZAK
Total consumption
2012
2013
Fine coal
GJ
4 332 426
4 736 730
Fuel oil
GJ
5 005
4 517
j.m.
Total consumption
2012
2013
Hard coal
GJ
14 384 037
15 158 825
Petroleum-based fuels
GJ
462 306
463 689
Natural gas
GJ
14 044
17 798
Grupa Azoty Police
j.m.
Hard coal
GJ
Total consumption
2012
2013
7 240 214
7 053 725
* Grupa Azoty Puławy’s data for 2012 are provided for comparison only (in 2012 the company was not part of the Group and was not included in its
consolidated financial statements for the 12 months ended December 31st 2012).
84
ENERGY
G4-EN3
TOTAL ENERGY CONSUMPTION IN [GJ]
Grupa Azoty S.A.
Grupa Azoty ZAK**
Grupa Azoty Police
2012
2013
2012
2013
2012
2013
2012
2013
Electricity, heat,
cooling and steam
purchased for
consumption
635 400
211 400
1 321 385
1 247 863
3 686 275
3 829 040
1 565 404
1 507 092
Electricity, heat,
cooling and steam
generated by the
organisation
9 071 694
9 328 215
6 255 063
6 869 426
17 263 119
17 642 379
12 077 573
10 310 256
366 000
343 000
543 349
557 314
1 557 671
1 558 919
501 084
510 543
9 341 094
9 196 615
7 033 099
7 559 975
19 391 723
19 912 500
13 141 894
11 306 804
Electricity, heat,
cooling and steam sold
by the organisation
Total energy
consumption within
the organisation
**Figures for Grupa Azoty ZAK do not take into account cooling generation.
85
WATER MANAG EMENT
EN DMA8-10
G4-EN8
WATER INTAKES AT THE GRUPA AZOTY GROUP
At the Grupa Azoty Group,
water is used chiefly for industrial
purposes, as a cooling agent, for
drinking and as sanitary water, to
produce process waters, and for
fire-fighting applications. Water
consumption management is
governed by applicable procedures
to ensure rational water management,
prevent water loss, minimise amount
of effluent, and prevent industrial
failures.
Grupa Azoty S.A.
■■ surface intake on the right bank of the Dunajec river,
■■ underground intake from Quaternary water-bearing,
formations (first aquifer);
Grupa Azoty ZAK
■■ surface intake from the Oder river,
■■ surface intake from the Łącza stream,
■■ tertiary and Quaternary groundwater intakes (deep wells),
■■ purchase of water drained from the Kotlarnia Sand Mine;
Grupa Azoty Puławy
■■ surface intake from the Wisła river (through four pipelines: R1–R4),
■■ surface intake from the Kurówka river,
■■ underground intake from Quaternary water-bearing formations (deep wells);
G4-EN8
Grupa Azoty Police
Total water abstraction increased at
two plants in the past year – Tarnów
(up 6.0%) and Puławy (up 9.9%)
– while decreasing at Kędzierzyn-Koźle
(down 3.9%) and Police (down 8.8%).
As a result, the total water abstraction
remained virtually unchanged, having
decreased only slightly (down 1.5%).
■■ surface intake from the Oder river,
■■ surface intake from the Gunica river.
G4-EN8
TOTAL WATER ABSTRACTION [M 3]
2012
2013
change
Grupa Azoty S.A.
12 516 000
13 267 000
6.0%
Grupa Azoty ZAK
7 336 000
7 052 240
-3.9%
97 599 890
107 244 776
9.9%
Grupa Azoty Police
162 595 854
148 246 534
-8.8%
Grupa Azoty (total)
280 047 744
275 810 550
-1.5%
G4-EN10
The Grupa Azoty Group strives to
optimise its water consumption
through efficient water management,
including water reuse. The method
and scope of water reuse depends on
production process characteristics at
individual plants.
86
WATER MANAG EMENT
PERCENTAGE AND VOLUME OF REUSED WATER
2 041 003 m 3
Grupa Azoty S.A.
Grupa Azoty ZAK
22.4%
86 984 m 3
reverse osmosis unit
850 101 m
condensate treatment plant
3
40.6%
2 861 160 m 3
recirculation system for treated industrial wastewater, ash
and slag hydraulic transport water, spent cooling water, and storm
water (the mixture is used to produce industrial water)
3.7%
3 805 283 m 3
waters assumed pure*
9 451 800 m 3
spent cooling water powering decarbonation stations
Grupa Azoty Puławy
Grupa Azoty Police
luwy unit (reuse in three cooling circulation systems
to compensate losses)
9.8%
2 868 000 m
3
water recirculated to intakes
1 021 030 m
3
turbine condensate
209 580 m 3
1 014 850 m 3
dirty condensate
process condensate
*16% last year – the substantial decrease was due to upgrade work in 2013.
Consumption optimisation measures
other than recycling, such as closed
cooling circuits, are also used.
A good example of such optimisation
is the Police plant, which operates
three systems circulating substantial
amounts of water: the CCW cycle
(16,500 m3/h), the TCW-1 cycle
(14,400–21,000 m3/h), and the
TCW-2 cycle (3,000 m3/h).
The improvement in efficiency
is best illustrated by contrasting
the amount of water circulating in
closed cooling cycles throughout the
year (321,880,560 m3/year) with the
amount of water abstracted from
intakes (147,905,778 m3).
EN DMA22-23 G4-EN22
WASTEWATER MANAGEMENT
Production processes generate various
types of wastewater (such as industrial
wastewater, sanitary sewage,
stormwater, and spent cooling water).
Depending on its type, wastewater
generated at the Tarnów plant
is transported using the industrial
water system to be treated at the
Central Wastewater Treatment Plant or
the Biological Wastewater Treatment
Plant. Industrial wastewater and
sanitary sewage undergo mechanical
and chemical treatment at the Central
Wastewater Treatment Plant. The
treated water is then discharged into
the Biała Tarnowska river. Industrial
wastewater containing biodegradable
substances is directed to drains and
trestle-supported sewer lines, and
subsequently treated biologically
at the Biological Wastewater
Treatment Plant. The wastewater
is then additionally streamed to the
Wastewater Treatment Facility
operated by the Tarnów Water and
Sewage Utility (Zakład Oczyszczalni
Ścieków Tarnowskich Wodociągów
Sp. z o.o.). Stormwater and spent
cooling water from the plant’s
premises are drained separately,
collected in a retention pond and then
directed through a Sutro weir into the
Dunajec river. If a failure occurs at one
of the installations and the wastewater
contaminates the EF drain, the drain
may be cut off completely and all
of the wastewater may be pumped
to the Central Wastewater Treatment
Plant, where specific water quality
parameters can be achieved. It is also
possible to flow the entire volume
of wastewater to the Wastewater
Treatment Facility operated by the
Tarnów Water and Sewage Utility
(Zakład Oczyszczalni Ścieków
Tarnowskich Wodociągów Sp. z o.o.).
87
Grupa Azoty Police operates an onsite wastewater treatment plant
comprising stationary equipment
for mechanical and chemical
treatment of raw sewage. In addition
to industrial wastewater, sanitary
sewage, leachate from landfill sites
and municipal wastewater from the
town and municipality of Police are
also treated at the plant (following
preliminary treatment in Police,
the wastewater is directed to the
on-site plant through the sewer
system). The treatment technology
in use at the plant is listed among
the Best Available Techniques
(BAT) for the industry (’Central final
treatment of inorganic waste water
in a chemical-mechanical WWTP’).
The treatment procedure involves
lime milk-based wastewater
neutralisation, aeration, coagulation,
sedimentation, centrifugation,
and final treatment in retention
and equalisation ponds where the
separated effluent is treated naturally.
As the treatment process is highly
efficient, the discharged wastewater’s
parameters are well below prescribed
values, and their impact on the quality
of water is negligible. Spent cooling
water and stormwater from the Police
plant, which are discharged directly
into the surface waters of the Oder
river, undergo regular and automatic
pH monitoring to control their acidity.
WATER MANAG EMENT
PERCENTAGE AND VOLUME OF REUSED WATER IN 2013
Grupa Azoty Puławy’s treated
wastewater is discharged into the
Wisła river. Individual wastewater
types are treated at the Central
Industrial Wastewater Treatment Plant
(mechanical and chemical treatment),
Biological Industrial Wastewater
Treatment Plant (biological
treatment), Blackwater Treatment
Plant (biological treatment), and
local pretreatment facilities. The
discharged water’s parameters
recorded in 2013 were significantly
below the limits specified in the
integrated permit.
The quality of wastewater discharged
by Grupa Azoty ZAK to the Oder
river was equally good. The plant
has a wastewater treatment system
comprising local pretreatment
facilities, the Central Mechanical
Wastewater Treatment Plant, and the
Central Mechanical and Biological
Wastewater Treatment Plant. The
wastewater is also directed to the
Piskorzowiec Wastewater Treatment
Plant. The on-site mechanical and
biological wastewater treatment
plant underwent upgrade work
in the past years, which included the
erection of a sediment dewatering
station. Upgrade work at the Central
Mechanical Wastewater Treatment
Plant was completed in 2014.
TOTAL WATER ABSTRACTION BY SOURCE [m 3]
G4-EN8
Grupa Azoty S.A.
Grupa Azoty ZAK
2012
2013
2012
2013
Surface water
11 961 000
12 673 000
3 811 000
3 839 540
Groundwater
555 000
594 000
1 849 900
1 345 200
Municipal water supply
0
0
0
0
Other
0
0
1 675 100
1 867 500
12 516 000
13 267 000
7 336 000
7 052 240
Total
Grupa Azoty Police
2012
2013
2012
2013
Surface water
94 063 885
103 431 596
162 245 909
147 905 778
Groundwater
3 536 005
3 813 180
0
0
0
0
349 945
340 756
Municipal water supply
Other
Total
0
0
0
0
97 599 890
107 244 776
162 595 854
148 246 534
88
WATER MANAG EMENT
G4-EN22
VOLUME OF WASTEWATER
Unit
Volume
2012
2013
Grupa Azoty S.A.
Central wastewater treatment plant – mechanical and chemical treatment
m3
3 622 000
4 042 000
Biological wastewater treatment plant – biological treatment
m
1 427 000
1 415 000
3
Grupa Azoty ZAK
Wastewater treatment system
m3
1 996 898
2 231 333
Piskorzowiec Wastewater Treatment Plant
m3
4 749 094
6 098 670
Central wastewater treatment plant – mechanical and chemical treatment
m3
2 684 969
2 580 467
Biological industrial wastewater treatment plant – biological treatment
m
3
1 295 760
1 332 850
Blackwater treatment plant – biological treatment
m
3
101 650
126 760
Dawidagi – mechanical treatment
m3
254 736
254 040
Biological treatment – tertiary treatment
m3
85 885 399
98 155 513
m3
42 062 549
36 419 081
Grupa Azoty Police
On-site Mechanical and Chemical Wastewater Treatment Plant
G4-EN22
WASTEWATER DISCHARGE BY DESTINATION
Unit
Volume
2012
2013
Grupa Azoty S.A.
Biała Tarnowska river
m3
3 622 000
4 042 000
The Wastewater Treatment Facility operated by the Tarnów Water and
Sewage Utility (Zakład Oczyszczalni Ścieków Tarnowskich Wodociągów
Sp. z o.o.); then discharged to the Biała river
m3
1 427 000
1 415 000
Dunajec river
m3
712 000
824 000
m3
4 749 094
6 098 670
m3
85 885 399
98 155 513
m3
42 062 549
36 419 081
Grupa Azoty ZAK
Oder river
Wisła river
Grupa Azoty Police
Internal seawaters – Oder river
89
Grupa Azoty S.A. leases and
manages 72.2 ha of land located
within a protected area of the
Dunajec river catchment basin.
The operations carried out within
this area, which contains surface
and underground water intake
facilities, as well as reservoirs feeding
water to an underground municipal
water intake point, pose no threat
to biodiversity. Abstraction of water
is subject to relevant permits which
set the maximum quantities of 
water that may be drawn, ensuring
they are not excessive. In the case
of Grupa Azoty S.A. the protected
areas include ’Dolny Dunajec’ (Lower
Dunajec River) (code: PLH120085;
area: 1,293.9 ha) and ’Biała Tarnowska’
(Biała Tarnowska River) (code:
PLH120090, area: 957.5 ha).
ENVIRONMENT OF
GRUPA AZOTY POLICE
As for Grupa Azoty Police, it owns or
holds perpetual usufruct right to land
adjacent to areas protected for their
high biodiversity value. These include
the following Natura 2000 sites:
■■
’Police – Kanały’ (Police Canals)
(code: PLH320015; area: 100.2 ha),
■■
’Zalew Szczeciński’ (Szczecin
Lagoon) (code: PLB320009, area:
47,194.6 ha),
■■
’Ujście Odry i Zalew Szczeciński’
(Oder Estuary and Szczecin Lagoon)
(code: PLH320018, area: 52,612.0 ha).
8,182.3 ha), ’Płaskowyż Nałęczowski’
(Nałęczów Plateau) (code: PLH060015,
area: 1,080.7 ha), ’Dolina Środkowej
Wisły’ (Middle Wisła River Valley)
(code: PLB140004, area: 30,777.9
ha), ’Małopolski Przełom Wisły’
(Lesser Poland Wisła River Gorge)
(code: PLB140006, area: 6,972.8 ha),
’Przełom Wisły w Małopolsce’ (Wisła
River Gorge in Lesser Poland) (code:
PLH060045, area: 15,116.4 ha).
ENVIRONMENT OF
GRUPA AZOTY PUŁAWY
Also in the vicinity of Grupa Azoty
Puławy there are protected areas
of high ecological value, including
three nature reserves. The first
of them is ’Jezioro Piskory’ (Lake
Piskory), a body of water created
by damming the Duży Pioter
watercourse. The lake, which is one
of the Lublin region’s finest refuges
for waterfowl and marshland birds,
is located some 4.5 km north of the
company’s premises. Another reserve
is called ’Łęg na Kępie’ in Puławy.
Established to protect a natural
floodplain forest of elms in the Wisła
river valley, it also contains forests
of willow and poplar trees as well as
elm and ash trees, remnants of vast
riparian forests that used to cover
the Wisła river terrace. That second
reserve is located some 4.5 km south
of the company’s premises. The third
protected area is ’Czapliniec’ near the
village of Gołąb, an animal preserve
established to protect a breeding
colony of grey herons.
Another unique site located at some
distance from the company’s plant
is the Kazimierz Landscape Park,
dissected by a system of gullies
formed in the easily eroding loess
soil. There are also six areas of high
natural interest included in the Natura
2000 network at distances varying
between 1.8 km to 16.2 km from the
plant: ’Puławy’ (code: PLH060055,
area: 1,157 ha), ’Dolny Wieprz’ (Lower
Wieprz River) (code: PLH060051, area:
ENVIRONMENT OF
GRUPA AZOTY ZAK
G4-EN14
ENVIRONMENT OF
GRUPA AZOTY S.A.
At some distance from the premises
of Grupa Azoty Police there are also
several areas designated as nature
reserves, including ’Białokrzew
Kopicki’, ’Olszanka’, ’Uroczysko
Święta’, ’Świdwie’, and ’Ostoja
Wkrzańska’ (formerly ’Puszcza
Wkrzańska’) (code: PLB320014,
area: 14,575.7 ha).
G4-EN12
The Group is fully aware of operating
within a specific environment, and of
coexistence in its immediate vicinity
of areas of high natural and ecological
values. Its priority is to respect this
diversity unconditionally.
G4-EN12
EN DMA11-12
G4-EN11
B i od i v er si t y
There are no protected areas of
high natural value in the immediate
proximity of Grupa Azoty ZAK’s
premises. However, there are some
Natura 2000 sites located between
10 km to 20 km away, including Park
Krajobrazowy Góra św. Anny (Saint
Ann Mountain Landscape Park)
(PLH160002, area: 5,084.3 ha), and
Obszar Chronionego Krajobrazu Łęg
Zdzieszowicki (Zdzieszowice Floodplain
Forest Protected Landscape Area)
(PLH160011, area: 619.9 ha).
Detailed and up-to-date information
on all the listed areas, including
information on their protected
species and habitats, can be found
in two publicly available databases
– Catalogue of Natura 2000 sites
compiled by the Institute for
Sustainable Development (INE),
and the Central Register of Nature
Protection Forms (CRFOP)14.
According to the calculations of air
pollution dispersion, there were no
instances of exceeding the allowable
concentrations of any pollutants
outside the areas to which the Group
holds legal title. The conclusion is that
the Group’s pollutant emissions have
no negative impact on the biology of
any neighbouring areas.
14 Catalogue of Natura 2000 sites:
http://www.obszary.natura2000.org.pl/index.
php?s=lista&o=wyszukiwarka. Central Register
of Nature Protection Forms (CRFOP):
http://crfop.gdos.gov.pl/CRFOP/search.jsf
90
G4-EC2
G4-EN15
EN DMA15-21
AIR EMISSIONS
In line with the environmental
management system in place, the
Grupa Azoty Group strives to mitigate
its atmospheric emissions, both
in terms of volumes and parameters
of emitted gases.
As regards greenhouse gases, the
Grupa Azoty Group emits mainly
carbon dioxide (CO2), a typical
pollutant generated by many
branches of the industry, as well
as nitrous oxide (N2O), generated
in the production of nitric acid.
Key sources of carbon dioxide
emissions are the Group’s CHP plants
and production facilities, primarily
ammonia and hydrogen, caprolactam,
nitric acid, melamine and urea units.
Significant impacts are also associated
with the production of synthesis gas,
aldehydes and alcohols.
Efforts made by Grupa Azoty to
mitigate its GHG emissions not
only benefit the environment, but
are also an important driver of its
long-term financial performance.
This is connected with the European
Union’s emissions trading scheme
(EU ETS).
91
AIR EMISSIONS
REDUCTION IN GHG EMISSIONS ACHIEVED IN RECENT YEARS
At Puławy, the replacement of the
nitrous oxide reduction catalyst and
the changed method of its installation
in the nitric acid unit’s reactors have
contributed to reducing emissions.
Total emission reductions achieved
as part of the Joint Implementation
project in 2008−2012 amounted
to 7,211,720 tonnes of CO2. The
project involved the application
of a high-temperature catalyst for
decomposition of nitrous oxide in
the ammonia oxidation reactors of
the nitric acid facility. As a result, the
volume of N2O emissions has been
reduced.
In recent years, including the closed
period of Joint Implementation
projects, the Group has taken
a number of specific measures that
have notably contributed to reducing
its GHG emissions.
In 2013, it replaced the catalyst for
high-temperature decomposition
of nitrous oxide in the ammonia
oxidation reactors of the dual
pressure nitric acid facility in Tarnów.
Thanks to the sustained, intensive
catalytic activity enabling a reduction
of the N2O content in outlet gases
by as much as 95%, emissions of
this greenhouse gas have been
substantially lowered. As a result,
174 tonnes of nitrous oxide have not
been released into the air. Emission
reductions achieved as part of the
Joint Implementation projects have
already amounted to 2,674,356 Mg of
CO2e. Cumulative emission reductions
in 2008−2012 at Grupa Azoty ZAK
amounted to 1,224,538 Mg of CO2e.
As part of a Joint Implementation
project, a secondary catalyst was
installed at the TKIV nitric acid
production unit, which decomposes
N2O inside the reactor, exactly
where it is generated. Under high
temperature and in the presence of
the catalyst, N2O is decomposed into
nitrogen (N2) and oxygen (O2).
Grupa Azoty Police did not participate
in Joint Implementation projects
(JI) in the second trading period
(2008−2012), and in 2013 there were no
direct activities on any of the EU ETScovered installations. As part of its
own activities, in 2008 the company
completed an upgrade of its fertilizer
unit. The result of the project,
spanning the years 2005−2008, is
a reduction in CO2 emissions by about
10,000 Mg CO2 per year. Its scale
is best demonstrated by a sharp
reduction in the emissions intensity
ratio: from 0.045 Mg CO2/1 Mg of
fertilizer to 0.0038 Mg CO2/1 Mg of
fertilizer.
CO 2 EMISSIONS INTENSITY RATIO (%)
(ABSOLUTE CO 2 EMISSIONS IN TONNES RELATIVE TO THE OUTPUT OF AMMONIA IN TONNES)
2012
2013
Change
Grupa Azoty S.A.
1.758
1.874
+6.6%
Grupa Azoty ZAK
ND
1.727
–
1.700
1.676
-1.4%
Grupa Azoty Police
1.941
1.925
-0.8%
Grupa Azoty (total)
1.771
1.759
-0.6%
92
OTHER AIR EMISSIONS
G4-EN18
G4-EN19
REDUCTIONS IN NITROUS OXIDE EMISSIONS
Last year saw great progress in the
mitigation of N2O emissions, as the
emissions intensity ratios recorded
by all the three Group companies
producing nitric acid came very close
to the level prescribed by BAT.
G4-EN18
N 2O EMISSIONS INTENSITY RATIO
(ABSOLUTE N2O EMISSIONS [KG] RELATIVE TO THE OUTPUT OF NITRIC ACID [MG])
2012
2013
Change
1.99
1.36
-31.7%
Grupa Azoty ZAK
b.d.
1.03
–
2.03
1.16
-42.9%
Grupa Azoty Police
n/d
n/d
n/d
Grupa Azoty (total)
2.02
1.16
-42.7%
Grupa Azoty S.A.
At Grupa Azoty S.A. the benchmark
level is expected to be achieved
already in 2014, thanks chiefly to
the catalyst replacement. Also at
Grupa Azoty Puławy, where the N2O
emissions intensity ratio in nitric
acid production was brought down
from 2.03 in 2012 to 1.16 in 2013, the
improvement resulted from the
replacement of the N2O reduction
catalyst and changed method of its
installation in reactors.
The ratio achieved in 2013 was
slightly higher than the benchmark
used to calculate a share of emission
allowances to be allocated for free
under the EU ETS (ca. 1 kg of N2O/
tHNO3), but lower from the level
prescribed by the Best Available
Techniques (BAT) for existing
medium-pressure installations (1.85
kg of N2O/tHNO3). The nitric acid
production units operated by Grupa
Azoty ZAK S.A. are modern facilities
which meet the benchmarks for N2O
emissions and are compliant with
the BAT standards. Altogether, the
Grupa Azoty Group improved its
performance by 43% year on year.
93
Ot h er ai r em i s si o ns
SOx, NOx AND OTHER SIGNIFICANT AIR EMISSIONS
G4-EN21
G4-EN21
In addition
to GHG
emissions,
activities
carried out by
the Grupa Azoty
Group were
also a source
of other air
emissions.
Greenhouse gas
Emissions
Unit
2012
2013
Change (%)
Grupa Azoty S.A.
Nitrogen oxides (NOx)
Mg
6 252.7
6 501.1
4.0%
Sulfur dioxide (SO2)
Mg
3 704.1
4 454.6
20.3%
Total dust
Mg
332
378.5
14.0%
Ammonia (NH3)
Mg
191
185
-3.1%
Methane (CH4)
Mg
25.6
74.6
191.4%
Carbon monoxide (CO)
Mg
188
214
13.8%
Sulfuric acid (H2SO4)
Mg
80.1
87.2
8.9%
Mg
1 130
1 184
4.8%
Mg
1 910
2 154
12.8%
Volatile organic compounds (VOC)
Mg
10
8
-20.0%
Mg
2 674
1 922
-28.1%
Ammonia (NH3)
Mg
446
459
2.9%
Organic acids
Mg
13
5
-61.5%
Benzene (C6H6)
Mg
0.35
0
-100.0%
Methane (CH4)
Mg
10
5
-50.0%
Total dust
Mg
279
324
16.1%
Particulate matter
Mg
45
209
364.4%
Aliphatic alcohols
Mg
9
7
-22.2%
Mg
7 394
4 111
-44.4%
Grupa Azoty ZAK
Mg
4 183
2 951
-29.5%
Ammonia (NH3)
Mg
811
902
11.2%
Ammonium nitrate dust
Mg
379
385
1.6%
Urea dust
Mg
28
28
0.0%
Ammonium sulfate dust
Mg
3.6
6
66.7%
Melamine dust
Mg
13
15
15.4%
Dust from fuel combustion
Mg
194
113
-41.8%
Grupa Azoty Police
Mg
4 079
3 011
-26.2%
Nitrogen dioxide (NO2)
Mg
1 703
1 477
-13.3%
Mg
171
195
14.0%
Fluorine compounds
Mg
7
5
-28.6%
Ammonia (NH3)
Mg
1 012
1 075
6.2%
Sulfuric acid (H2SO4)
Mg
54
37
-31.5%
Total dust
Mg
646
604
-6.5%
Aliphatic hydrocarbons
Mg
0.04
0.04
0.0%
Benzo(alpha)pyrene (C2OH12)
Mg
0.13
0.00
-100.0%
94
REDUCTIONS IN NITROUS OXIDE EMISSIONS
The increase in Grupa Azoty’s
emissions of dust, sulfur dioxide
and carbon monoxide from fuel
combustion recorded in 2013 resulted
from higher output of steam from its
CHP plant. On the other hand, the
reduced emissions of ammonia in
Tarnów can be linked to lower output
of ammonium nitrite. An increase in
hydrogen output by Grupa Azoty S.A.
resulted in higher methane emissions.
At Grupa Azoty ZAK, we should note
the increase in dust and sulfur dioxide
emissions (higher heat output), and
the reduction in carbon monoxide
emissions due to lower anhydride
output.
Innovative Desulfurization Unit
At Grupa Azoty Puławy
Significant changes in emission levels
were seen at Grupa Azoty Puławy: the
2013 increase in ammonia emissions
followed the launch of a new flue gas
desulfurization unit (new source of
emissions). On the other hand, the
new unit has helped to significantly
lower sulfur dioxide emissions (by
about 44%). The marked reduction
in NOx emissions in 2013 resulted
from the completion of phase 1
of the project to construct NOx
reduction units at boilers No. 4 and
No. 5 (emissions have been lowered
to 350mg/m3; the final completion
of work in 2014 will reduce them
further to less than 200mg/m3).
Another factor behind the reduced
NOx emissions was the launch, in the
fourth quarter of 2012, of a selective
catalytic reduction (SCR) unit on line 4
of the nitric acid production facility.
On July 8th 2013, Europe’s first and the
world’s third ammonia-based wet flue
gas desulfurization unit was officially
placed in service in Puławy.
The project will reduce air emissions
from the CHP plant by more than
80%, with ammonium sulfate
obtained as a process by-product
to be used in the manufacture of
sulfur fertilizers by the New Fertilizer
Production Facility.
SUPPLEMENTARY NON - FINANCIAL INFORMATION
G4-EN15
GREENHOUSE GAS EMISSIONS
Greenhouse gas
Unit
Emissions [Mg of CO2 equivalent]
2012
2013
Grupa Azoty S.A.
Carbon dioxide (CO2)
Mg
1 104 908
1 210 550
Nitrous oxide (N2O)
Mg
177 122
118 419
Mg
394 859
1 103 923
Nitrous oxide (N2O)
Mg
-
147 887
Mg
3 363 384
3 382 499
Nitrous oxide (N2O)
Mg
533 357
303 614
Mg
1 658 309
1 676 201
Grupa Azoty ZAK*
Grupa Azoty Police
* Emissions from the EU ETS-covered installations.
**Grupa Azoty Puławy’s data for 2012 are provided for comparison only (in 2012 the company was not part of the Group and
was not included in its consolidated financial statements for the 12 months ended December 31st 2012).
95
G4-EN23
Wa s t e manag em en t
Efforts to mitigate waste-related
threats start from waste prevention
at all levels, from planning,
to designing, to manufacture
of products, as well as during
and after their consumption.
This objective has long been a key
element of the Grupa Azoty Group’s
operational strategy. Upgrades
of old installations and launch
of new, low-emission and low-waste
BAT-compliant technologies help
minimise the amount of waste while
boosting output, minimise resource
consumption, and improve waste
sorting for recovery and recycling.
Grupa Azoty Police is the only Polish
plant to operate a titanium white
production facility. The process byproducts include hydrolytic sulfuric
acid and iron (II) sulfate, which can be
converted into commercial products
and so are stored (hydrolytic sulfuric
acid) or extracted from the landfill
site (iron (II) sulfate) for reprocessing.
After drying, the iron (II) sulfate
waste is sold to customers, while the
leachate which has passed through
the iron (II) sulfate landfill site is
used as a coagulant in the company’s
wastewater treatment facility. The
hydrolytic acid, on the other hand,
is recovered in the fertilizer facility.
Together with used-up catalysts, it
is recycled in the phosphoric acid
production unit. Due to the landfilling
process, the annual waste balances
include significant volumes of stored
waste, carried over to the next
accounting year. In the case of iron
(II) sulfate, the volume processed
into commercial products exceeds
the volume generated during the
year, which is connected with
the extraction of waste landfilled
in previous years. From the
environmental point of view, this
is a highly positive development.
The main types of waste produced
by the Grupa Azoty Group include
residue of coal combustion at the
CHP plants and sludge from effluent
treatment. Given its specific
production profile, the main type
of waste produced by Grupa Azoty
Police is phosphogypsum, which −
mixed with power generation waste
− is landfilled separately on site.
Sustainable waste management
takes more than just modern
technologies. It also requires staff
awareness and clearly defined rules
laid down in a company’s internal
regulations. The development and
implementation of procedures
forming a comprehensive waste and
packaging management framework
have helped significantly reduce the
volume of waste generated by the
Group. It should be noted that
the Group’s waste is increasingly
reused, mainly through resource
recovery. It is also sorted and stored
at designated and properly marked
locations. Individual Group companies
have their own recovery and disposal
processes for some waste, while
other waste is transferred to licensed
waste management contractors.
Some is used as a source of raw
materials by Grupa Azoty S.A.
For instance, plastic waste is recycled
in the Compounding PA6 and
Compounding POM units.
In order to expand the capacity of
Grupa Azoty Puławy’s landfill site
for waste other than hazardous and
inert waste, phase 1 of the project to
raise the dykes of the K1, K2, K4 and K6
cells by 3 meters, up to 132.50 metres
above sea level, was executed in
2009−2012.
96
Phosphogypsum Landfill Site at
Grupa Azoty Police
Back in 2012, Grupa Azoty S.A.
finished the construction of an
advanced facility designed to collect
ash from the on-site CHP plant.
It has noticeably reduced the volume
of landfilled waste, enabling its
commercial utilisation. Currently,
the collected ash is sold to third-party
customers (including concrete,
brick and cement manufacturers).
The storage technology used at the
phosphogypsum landfill site has
won the company a certificate of the
American World Environment Center
foundation. Since 1994, Grupa Azoty
Police has made efforts to introduce
high growing vegetation at the landfill
site. There is already a profusion of sodforming vascular plants. The condition
of the grass sod, the extent to which it
covers the site, the visual appearance
of the plants and their ability to go
through all development phases,
including growth of fertile shoots,
demonstrate the ability of many plant
species to develop normally in this
environment.
For a number of years, the landfill
site has been a habitat for many plant
species and an assemblage of animals,
including some 100 species of birds.
The ornithologists from the Szczecin
University who conducted research
over an area adjacent to the landfill site
(storage reservoirs for the wastewater
treatment plant) have found that the
area can be compared to the Świdwie
reserve in terms of the populations and
diversity of bird species.
97
Waste generated by Grupa Azoty
is classified and disposed of
as required by law. A notable
success of last year is that the
volume of hazardous and nonhazardous waste was reduced
by nearly 10% and over 19%,
respectively, resulting in an
overall waste volume reduction
of almost 19%.
G4-EN28
Ash Collection Facility
in Tarnów
Individual companies of the
Grupa Azoty Group comply with
the legal requirement defining
a percentage of packaging materials
that must be reclaimed through
a professional provider of recycling
services. In 2013, all the companies
met the legally prescribed levels
of packaging reclaimed and recycled.
G4-EN28
PERCENTAGE OF PACKAGING MATERIALS
THAT ARE RECLAIMED RELATIVE TO VOLUMES MARKETED (%)
Grupa Azoty S.A.
15%
Grupa Azoty ZAK
Grupa Azoty Puławy
15%
21.5%
21.5%
Grupa Azoty Police
16.5%
21.5%
23.7%
46%
46%
58%
Wooden packaging
Plastic packaging
Steel packaging
Grupa Azoty S.A.
Total packaging
Recovery rate for
total packaging
46%
58%
15%
63.8%
50.6%
Paper and cardboard packaging
Grupa Azoty ZAK
Grupa Azoty Puławy
Grupa Azoty Police
50%
50%
50%
55.0%
58.5%
58.5%
58.5%
64.4%
G4-EN23
WASTE BY TYPE
Unit
Waste weight
2012
2013
Grupa Azoty S.A.
Hazardous waste
Mg
127
108
Non-hazardous waste
Mg
98 228
96 835
Total
Mg
98 355
96 943
Hazardous waste
Mg
3 162
4 816
Non-hazardous waste
Mg
88 418
110 466
Total
Mg
91 580
115 282
Hazardous waste
Mg
416
605
Non-hazardous waste
Mg
198 776
212 135
Total
Mg
199 192
212 740
Grupa Azoty ZAK
Grupa Azoty Police**
Hazardous waste
Mg
76 335
68 245
Non-hazardous waste
Mg
3 616 034
2 817 867
Total
Mg
3 692 370
2 886 112
* Grupa Azoty PUŁAWY’s data for 2012 are provided for comparison only (in 2012 the company was not part of the
Group and was not included in its consolidated financial statements for the 12 months ended December 31st 2012).
**Large amounts of waste are processed at facilities operated by the company. The hydrolytic sulfuric acid stored
by the company is re-used in the production of phosphoric acid and ammonium sulfate. Consequently, the annual
waste balances include the volumes stored and carried over to the next accounting year (hydrolytic acid).
The negative balance of the iron (II) sulfate landfill site is due to the 100% commercial utilisation of the waste
volume generated in a given calendar year and extraction of the waste landfilled in previous years.
98
G4-EN23
WASTE BY DISPOSAL METHOD
Unit
Waste weight
2012
2013
Grupa Azoty S.A.
On-site recovery
Mg
90
0
Transfer to third-party contractors
Mg
98 265
96 943
Total
Mg
98 355
96 943
Grupa Azoty ZAK*
On-site landfilling
Mg
2 706
0
Mg
106 241
125 121
Total
Mg
108 947
125 121
Mg
569
780
On-site recovery
On-site landfilling
Mg
28 231
26 238
Mg
152 746
185 140
Waste stored at year end compared with waste
generated during the year − hazardous waste
Mg
9
49
Waste stored at year end compared with waste
generated during the year − non-hazardous waste
Mg
17 637
534
Total
Mg
199 192
212 740
Mg
475 253
403 284
Grupa Azoty Police***
On-site recovery
On-site disposal
Mg
1 069 059
883 914
On-site landfilling
Mg
2 064 718
1 533 477
Mg
85 762
84 276
Total
Mg
3 694 792
2 904 951
*
The larger volume of waste disposed of than the volume generated by Grupa Azoty ZAK resulted from the transfer
in 2013 of waste produced in previous years to third-party waste disposal contractors.
** Grupa Azoty Puławy’s data for 2012 are provided for comparison only (in 2012 the company was not part of the Group
*** In the case of the Police plant, the substantial amount of waste is connected with the extraction from the landfill site
and treatment of the iron (II) sulfate waste (landfilled in previous years), in the process described above.
99
EN DMA30
G4-EN30
TRANSPORT
The Company does not have its own
fleet of transport vehicles to carry
raw materials and products. However,
it operates a fleet of passenger cars
and delivery vehicles, all of which
are modern vehicles equipped with
fuel-efficient engines with low exhaust
emissions. With respect to its fleet, the
Company has put in place standard
environmentally-friendly procedures
concerning the recycling of waste,
such as used batteries and tyres.
The main type of transport vehicles
used by Grupa Azoty S.A. to carry
fertilizers is semi-trailers with
tarpaulin covers, provided by third
parties. While the Company does not
require the carriers to comply with
specific EURO standards, it obligates
them to use the shortest possible
routes and vehicles complying with
the EURO 5 and EURO 6 emission
standards.
TRANSPORT STRUCTURE
Grupa Azoty S.A.
Grupa Azoty ZAK
Rail transport
84.6%
Road transport
14.0%
1.4%
Sea transport
(including, for instance, combined rail and sea transport)
Grupa Azoty Puławy
Grupa Azoty Police
66.0%
41%
30.2%
29.7%
40%*
29.1%
4.3%
19%
40.7%**
* 38% road transport and 2% combined road and rail transport;
**including 2.1% inland waterway transport.
Two factors come into prominence
when considering environmental
impacts of our transport activities:
the direct environmental impact
arising from the use of electricity and
fuels as well as exhaust gas and noise
emissions, and the need to ensure
environmental safety when carrying
hazardous substances (for more
information, see ’Transport safety’).
With advanced logistics solutions,
we are able to optimise shipments,
which translates into financial and
environmental savings. Generally,
the use of rail transport is most
optimal. However, for the Police
plant, given its location, it is sea
transport that is most beneficial.
100
Taking part in global
markets means working
across great distances.
Our raw materials
arrive from far away,
while the products
travel even further.
It's not just a question
of cost, but also
of safety – responsibility
for places where are
products arrive,
and for every kilometer
of roadway which gets
them there.
101
ENVIRONMENTAL PROTECTION PROJ ECTS
EN DMA27
G4-EN27
KEY PRO -ENVIRONMENTAL INVESTMENT PROJECTS
strategy provides for the use of
energy-efficient technologies
and mitigation of the Group
companies’ environmental
footprint. These objectives
translate into very specific
obligations and investments
in assets at the individual
companies of the Grupa Azoty
Group. The investments are
expected to significantly reduce
operating costs, including
the cost of fees and charges
paid for economic use of the
environment.
Grupa Azoty S.A.
■■ In 2013, the Company completed
an upgrade of the sulfuric acid plant.
The project involved installation
of a new contactor system with heat
exchangers and economisers, as well
as construction of a sulfur furnace with
a waste heat boiler. Its completion
resulted in improved environmental
performance and increased steam
output.
■■ In 2013, the Company completed the
distillation of palladium-catalysed
cyclohexanone rectification residue
project. It helped reduce the
consumption of phenol and energy
(power, 0.9 MPa steam, 1.7 MPa steam,
frigories, natural gas, and circuit water)
used in cyclohexanol production.
■■ In 2014, the Company plans
to complete upgrade of the interior
of ammonia synthesis reactors.
The project is expected to result
in reduced consumption of electricity
needed to compress synthesis gas
and cooling ammonia, better use
of reaction heat to produce steam, and
reduced consumption of the coolant.
■■ Plans for 2014−2016 include upgrade
of the existing infrastructure of on-site
CHP No. 2, and bringing the existing
system to full compliance with the new
emission standards.
Grupa Azoty ZAK
■■ In 2014, the company completed
an upgrade of the Mechanical Wastewater Treatment Plant, with the current
maximum work load of 500 m3/h.
The project will result in increased
efficiency of wastewater pretreatment
and, as a result, improved parameters
of treated wastewater from the mechanical section of the plant.
■■ A new facility is planned to be put
into service, which will replace the
technologically obsolete and worn-out
installations of the existing on-site CHP
plant. The completion of the project
will help increase the efficiency of heat
and electricity generation and reduce
air emissions (the project is planned for
2014−2016, with the new plant expected
to be put into service in 2017).
Grupa Azoty Puławy
■■ The construction of a flue gas
desulfurization unit was completed
in 2013. The purpose of the project was
to reduce sulfur dioxide emissions into
air from 3,000 mg/m3 to below 200 mg/
m3. The FGD unit uses the wet ammonia
method to reduce sulfur emissions.
■■ For 2014, the company plans
completion of the construction of 
NOx reduction units on OP-215 boilers
No. 4 and No. 5.
■■ The construction of the Biological
Wastewater Treatment Plant’s
precipitate dehydration unit
is expected to be completed in 2014.
It will allow Grupa Azoty Puławy
to outsource management of this waste
to third parties, and thus eliminate the
need to deposit it within the landfill site.
Grupa Azoty Police
■■ In 2013, the company completed
a project involving construction
of the iron (II) sulfate neutralisation
plant ’MONOHYDRAT’. Its purpose
is to facilitate the management of waste
produced by the titanium white
plant. Neutralised iron (II) sulphate
monohydrate may be used for the
purpose of chrome (VI) reduction in the
cement industry.
■■ In 2015, a flue gas treatment unit
is expected to be put into service and
upgrade of CHP plant No. 2 is scheduled
to be completed.
102
■■ In 2015, the company also plans to complete
construction of an industrial wastewater
neutralisation unit at the titanium white
plant, which will help reduce sulfate ion
emissions to water.
■■ Construction of a decomposition sludge
neutralisation unit is expected to be
completed in 2015. This project is designed
to reduce sulfate ion emissions to water from
the titanium white production plant.
■■ In 2014, the company will complete
expansion of the post-calcination gas
desulfurization system through the addition
of two new reactors (SO2 emissions from the
titanium white plant).
■■ Phase 1 of a project to upgrade the
decomposition gas treatment system
is scheduled to be completed in 2014.
It is designed to reduce SO2 emissions from
the titanium white plant (the purpose of the
project is to reduce SO2 emissions and limit
emissions of sulfuric acid mists from the
feedstock decomposition unit at the titanium
white plant).
■■ The start-up of a continuous monitoring
system for SO2 and dust emissions from the
titanium white plant is also planned for 2014.
■■ The plans for 2014 also include a project
involving the purchase and installation
of a second roller mill system, whose
objective is to eliminate the Raymond mill
line and thereby reduce the nuisance caused
by plant operation, as well as noise levels,
electricity consumption and costs of repair/
maintenance of the calcite milling unit.
Over pln 160m invested
in a pro-environmental
project by Grupa Azoty Police
Grupa Azoty Police is implementing
a new pro-environmental project to
construct a flue gas treatment unit.
With its cost exceeding PLN 163m,
it is the second project of that scale
implemented in the area of the Province
of Szczecin, after the Świnoujście
LNG terminal. The project is part of
the upgrade of CHP plant No. 2. Once
the work is completed in 2015, Grupa
Azoty Police will significantly reduce
certain air emissions and meet the more
restrictive standards imposed on the
Polish energy sector by the European
Union. It is an element of changes
within the Polish energy sector, which
is currently undergoing a process of
transformation.
EN DMA29
G4-EN29
COMPLIANCE
Internal regulations and procedures
in place at the Grupa Azoty
Group ensure compliance with
environmental protection regulations.
However, despite the utmost
care exercised and attention paid
to the environmental issues by the
management boards of the individual
companies and the employees
of the individual business units, last
year administrative proceedings
were pending against Grupa Azoty
Group companies on the grounds
of alleged violations of the applicable
environmental standards.
In the case of Grupa Azoty Puławy,
the analysis of the data from the
continuous emissions monitoring
system at the on-site CHP plant
showed isolated instances
of exceeding the sulfur dioxide
emission standards. They were caused
by boiler change-overs from the old
emission source to the new emission
source following the installation
of a flue gas desulfurization unit,
an investment project aimed
at improving the quality of flue gases.
As at the date of this Report, no
decision on a penalty has been made.
The Company estimates that it may
reach approximately PLN 20 thousand.
Other than the above, no exceedance
of other parameters was identified,
no administrative proceedings
concerning environmental protection
were pending and no penalties were
imposed on the company. In 2013, no
environmental fines were imposed
on and no complaints were filed
against Grupa Azoty Police.
There were administrative
proceedings pending against Grupa
Azoty S.A., concerning excessive noise
emissions from the VRM Unit. As at the
date of this Report, no decision
on a penalty has been made. The
Company estimates that the amount
of the penalty should not exceed PLN
12 thousand.
In the case of Grupa Azoty ZAK,
a penalty of PLN 157,410 was
imposed on the company in 2013 for
discharging industrial wastewater
into the Oder river in 2010 and
2011 in violation of the terms and
conditions of the relevant water
permit. Grupa Azoty ZAK has planned
certain measures to solve the problem
of periodic exceedance of permitted
parameters of discharged wastewater.
It has obtained a decision to postpone
the penalty payment deadline until
the remedial actions have been taken.
103
104
3
Responsible employer
and community member
105
The easiest way
to earn respect
is by showing it
to others.
This rule works
– we've been practicing
it for years in our
employee relations.
Today we are able to say,
that we can always count
on the people who work
for us – as they can
count on us.
106
EMPLOYEES
The Grupa Azoty Group is a significant
employer whose headcount at the
end of 2013 was almost 14,000,
including 10,000 people working
in the subsidiaries covered by this
Report. The Group’s main companies
are also key employers for local
communities in the towns where they
are situated, i.e. Tarnów, KędzierzynKoźle, Puławy, and Police.
The companies being part of the
Grupa Azoty Group have been, and
continue to be, a major factor in the
development of these towns.
It is in their proximity that people
have gathered and built housing
estates.
Employee satisfaction survey
In September 2013, a standardised
employee satisfaction survey was
carried out in the Grupa Azoty
Group’s companies in Tarnów,
Kędzierzyn-Koźle, and Puławy.
The survey aimed at identifying the
sources of satisfaction and motivation
among the Group’s employees.
The respondents declared their
loyalty and satisfaction with the work,
which they find motivating. They can
appreciate the fact that, especially
in comparison with other companies
operating in the respective
regions, the Grupa Azoty Group
is an attractive employer. Compared
with 2011, the employee loyalty and
motivation have increased.
LA DMA1-2 G4-LA2
G4-EC7
G4-EC8
EMPLOYMENT AND ADDITIONAL BENEFITS
Having a workforce in the thousands
entails a huge responsibility, not only
for them but also for their families.
This is why the Grupa Azoty Group’s
governing body wants to make sure
the employees receive not only
decent remuneration and training
to foster their development, but
also additional benefits. The fact
of vital importance at the present
time of hardships and insecurity
for households is that virtually all
employees work under permanent,
full-time employment contracts.
Employees working in Tarnów,
Kędzierzyn-Koźle, and Police are
covered by the Employee Pension
Plan. Employees of the Group’s
individual companies can also benefit
from additional medical care and
group insurance schemes.
Around one and a half thousand
employees of Grupa Azoty S.A.
benefit from additional medical
care services. They have access
to GPs and specialist physicians,
as well as a selection of specialist
medical tests and diagnostics, for
a token price of one złoty. In addition
to occupational medicine services
and specialist consultations,
employees covered by the medical
care plan receive support to partly
pay for preventive vaccination and
outpatient rehabilitation. Almost 90%
of Grupa Azoty Puławy’s employees
are covered by additional group
insurance schemes. Under the group
insurance, some of them have access
to a wide range of medical services.
As for employees from KędzierzynKoźle, they can join an additional
group insurance scheme, which
currently covers 1,244 employees
and 326 members of their families.
The insurance covers accidents,
death, serious illnesses, and hospital
stay. Under the insurance policy, both
the insured and the joint insured can
benefit from medical care services.
107
They are also entitled to additional
medical check-ups under annual
health promotion programmes.
Access to group insurance schemes
and additional medical care is also
provided to employees from Police.
A noteworthy thing is the respect
which the Group has for its employees
with the longest periods of service.
At present, people aged 50 and
more represent over 33% of the total
workforce, and over 40% in Police.
Although in the job market they are
commonly referred to as individuals
at risk of exclusion, the Grupa Azoty
Group considers them priceless.
The employment of people aged
50 or more and high innovation
potential tend to go hand in hand
rather than be mutually exclusive.
It must be stressed that a company’s
competences often rely on these
people, as their expertise and
experience constitute an asset giving
the Group a competitive advantage.
An ability to share this
experience with younger
colleagues is a crucial condition
for the long-term development
of companies. The knowledge, which
has been passed on to successive
generations of chemical engineers
since the interwar period, is a unique
value of the Grupa Azoty Group.
It is a power of creation derived
from tradition, a business reality
rather than merely a brand identity
statement.
EMPLOYEES
MEDIA USED IN INTERNAL COMMUNICATIONS
G4-10
G4-11
G4-LA12
employees have wide access
to information on the Group and
its companies. Each company has
its local media to communicate
key information on current
organisational, social, and cultural
matters.
Media
Grupa Azoty S.A.
Grupa Azoty ZAK S.A.
Grupa Azoty Police
Grupa Azoty Puławy
Corporate
bulletin
Tarnowskie Azoty
monthly 3,000 copies
Twój ZAK bi-monthly
1,000 copies
Magazyn Police
monthly 2,500 copies
PULS monthly
2,000 copies
Broadcasting
system
Programme
broadcasting three
times a day (6:40 am;
10 am; 2:45 pm)
None
Irregular programme
broadcasting
Programme
broadcasting three
times a day (9:30 am;
2:30 pm; 10:30 pm)
Intranet
Available
Available
Available
Available
Employment
at the four
companies
in the period
covered by
this Report
was as follows:
EMPLOYMENT BY SEX AND AGE GROUP
By sex
2013
By age
Total
Women
Men
<30
30–50
>50
Grupa Azoty S.A.
626
1 446
79
1 268
725
2 072
Grupa Azoty ZAK
473
1 100
114
911
548
1573
Grupa Azoty Puławy
789
2 506
586
1 865
844
3 295
Grupa Azoty Police
554
1841
231
1142
1 022
2 395
2 442
6 893
1 010
5 186
3 138
9 335
Grupa Azoty Group (total)
69.8%
69.9%
76.1%
76.9%
73.8%
100%
35%
34.8%
61.2%
57.9%
25.6%
42.7%
33.6%
100%
56.6%
55.6%
47.7%
Men
30.2%
24%
23.1%
< 30
25.2%
17.8%
3.8%
Grupa
Azoty S.A.
30–50
Women
30.1%
Grupa
Azoty ZAK
Grupa
Azoty
Puławy
Grupa
Azoty
Police
Grupa
Azoty
Group
(total)
Grupa
Azoty S.A.
108
> 50
7.2%
Grupa
Azoty ZAK
Grupa
Azoty
Puławy
9.6%
10.8%
Grupa
Azoty
Police
Grupa
Azoty
Group
(total)
EMPLOYEES
EMPLOYMENT BY EMPLOYMENT CONTRACT AND FORM
By employment contract
2013
By employment form
Full-time
Part-time
Open ended
Fixed term
Grupa Azoty S.A.
2 070
2
1 964
108
Grupa Azoty ZAK
1 567
6
1 520
53
Grupa Azoty Puławy
3 292
3
3 077
218
Grupa Azoty Police
2 395
0
2 228
167
9 324
11
8 789
546
0.1%
0.4%
0.1%
0%
0.1%
100%
5.2%
3.4%
6.6%
7%
5.8%
93.4%
93%
94.2%
Grupa
Azoty
Puławy
Grupa
Azoty
Police
Grupa
Azoty
Group
(total)
100%
99.9%
99.6%
99.9%
100%
99.9%
94.8%
96.6%
Grupa
Azoty S.A.
Grupa
Azoty ZAK
Grupa
Azoty
Puławy
Grupa
Azoty
Police
Grupa
Azoty
Group
(total)
Grupa
Azoty S.A.
Grupa
Azoty ZAK
full-time
employed for a definite term
part-time
Grupa Azoty S.A. – 98.8%
■■
Grupa Azoty ZAK – 98.2%
■■
Grupa Azoty Puławy – 99.7%
■■
Grupa Azoty Police – 99.0%
Analysis of employee turnover data
reveals trends related to typical
replacement of retiring staff with
younger employees. The largest
group of employees leaving work
were the oldest persons, while
young people prevailed among
the new hires.
109
G4-LA10
■■
LA DMA1-2
Percentage of workforce covered by
collective bargaining agreements:
employed for a indefinite term
As regards job departures,
particularly of elderly people,
it is necessary to mention special
bonuses for retirees. Under their
collective bargaining agreements,
individual companies provide for
severance pay for retirees which is
higher than that guaranteed by the
Polish Labour Code. In order to stay in
contact with their retired employees,
the companies often host meetings
for them.
EMPLOYEES
NEW HIRES BY SEX AND AGE GROUP
New hires
2013
By sex
By age
 
Total
 
Women
Men
<30
30–50
>50
Grupa Azoty S.A.
42
28
25
35
10
70
Grupa Azoty ZAK
20
17
14
17
6
37
Grupa Azoty Puławy
29
75
54
47
3
104
Grupa Azoty Police
36
151
120
61
6
187
127
271
213
160
25
398
EMPLOYEE DEPARTURES BY SEX AND AGE GROUP
Employee departures
2013
By sex
By age
Women
Men
<30
30–50
>50
 
Total
 
Grupa Azoty S.A.
24
38
1
10
51
62
Grupa Azoty ZAK
10
44
2
21
31
54
Grupa Azoty Puławy
25
62
6
11
70
87
Grupa Azoty Police
10
77
8
18
61
87
69
221
17
60
213
290
398
400
290
Employee hires
187
Departures
104
70
87
62
87
54
37
Grupa
Azoty S.A.
Grupa
Azoty ZAK
Grupa
Azoty
Puławy
Grupa
Azoty
Police
110
Grupa
Azoty
(total)
EMPLOYEES
LA DMA9-11
G4-LA9
STAFF DEVELOPMENT AND TRAINING
As stated above, the Grupa Azoty
Group attaches great importance
to the development of its employees.
The number of training hours per
employee is not the only proof
of that policy. Besides various
training courses and seminars
meant to upgrade their skills,
employees can receive financing or
co-financing of language courses
or higher education studies. The
terms of such financing vary from
company to company, and may
depend, like in the Kędzierzyn-Koźlebased company, on whether it is the
employer who sends an employee
to pursue studies (full financing),
or whether it is the employee’s
own initiative (partial financing).
When taking up studies at a higher
education institution, an employee
may also be entitled to additional
leave. There are no programmes
dedicated to persons terminating
their employment (retiring
employees)
TOTAL AND AVERAGE NUMBER OF EMPLOYEE TRAINING HOURS
Total number of training hours
2013
By sex
Women
Men
Grupa Azoty S.A.
13 758
29 883
Grupa Azoty ZAK
4 824
Grupa Azoty Puławy
Average number of training hours
Total
By sex
Total
Women
Men
43 641
21,98
20,67
21,06
8 384
13 208
10,20
7,62
8,40
16 904
41 388
58 292
21,42
16,52
17,69
Grupa Azoty Police
15 967
34 396
50 363
28,82
18,68
21,03
51 453
11 4051
165 504
21,07
16,55
17,73
111
EMPLOYEES
LA DMA9-11
G4-LA11
EMPLOYEE REVIEWS
A common annual performance
review system has been implemented
at the companies based in Tarnów and
Kędzierzyn-Koźle. The other Group
companies have in place their own
employee review systems.
At Grupa Azoty S.A., employee
reviews are carried out based on the
system referred to at the beginning.
The system relies on a 5-grade
assessment framework and individual
scorecards for all job groups, with
the number of criteria ranging from
16 to 25. The scorecards include
information on the effectiveness
of training received by an employee,
proposed areas for professional
development, and potential
assignment to reserve staff. Last year,
1,908 of Grupa Azoty’s employees
received performance reviews,
excluding those who had worked for
the Company for less than one year.
Grupa Azoty Police carries out
quarterly performance reviews.
Among those reviewed are all
employees except Management
Board members, the chief accountant
and persons employed under
manager contracts (those excluded
from quarterly reviews are evaluated
separately). Last year, approximately
95% of all employees were subject
to the review.
The Puławy-based company, which
has joined the Grupa Azoty Group
recently, does not operate a standard
employee performance review
system. Its review system is limited
to the management staff of the three
highest tiers (from the Management
Board to the N-3 level) and covers
close to 150 persons. However, this
is a typical MBO review, and does not
evaluate the quality of work as such.
112
EMPLOYEES
G4-EC5
HR DMA
EC DMA5
LA DMA12
HR DMA3
G4-HR3
NON - DISCRIMINATION
The Grupa Azoty Group is looking
to establish a formal framework
for preventing discrimination in all
forms. Following the date of this
Report, Grupa Azoty S.A. adopted
appropriate rules to counteract
discrimination. This approach is
inextricably linked with the building
of the Group-wide organisational
culture. As there were no instances of
discrimination reported at the Group
in 2013, no remedial measures were
taken on that basis.
There were no cases of unfair
(i.e. drastically low) remuneration
reported at any of the Group
companies. At each of the Group
companies, the lowest salary was
11%–89% higher than the national
minimum pay
MINIMUM SALARIES AT THE GRUPA AZOTY GROUP
Grupa Azoty S.A.
2012
1500
Grupa Azoty ZAK
2013
2012
2900
2013
1500
1600
2012
1600
2406
2800
Grupa Azoty S.A.
Ratio of the lowest
salary at the company
to national minimum pay
2013
1500
2012
1600
2414
Minimum salaries at the grupa azoty group company
Grupa Azoty Police
2885
2013
1500
3029
1600
2049
1770
Minimum salaries in Poland
Grupa Azoty ZAK
Grupa Azoty Police
2012
2013
2012
2013
2012
2013
2012
2013
193,3%
175,0%
160,4%
150,9%
192,3%
188,8%
136,6%
110,6%
113
EMPLOYEES
OTHER NON - FINANCIAL DATA
EMPLOYMENT BY SEX
2012
2013
Women
Men
Women
Men
609
1 457
626
1 446
29%
71%
30%
70%
463
1 127
473
1 100
29%
71%
30%
70%
788
2 496
789
2 506
24%
76%
24%
76%
Grupa Azoty S.A.
Total number of employees by sex
Percentage of employees by sex
Grupa Azoty ZAK
Grupa Azoty Police
528
1 767
554
1 841
23%
77%
23%
77%
2 388*
6 847*
2 442
6 893
26%
74%
26%
74%
Total for the Group
Total
9 235*
9 335
EMPLOYMENT BY AGE GROUP
2012
2013
<30
30–50
>50
<30
30–50
>50
57
1 245
764
79
1 268
725
3%
60%
37,0%
4%
61%
35%
Grupa Azoty S.A.
Total number of employees by age group
Percentage of employees by age group
Grupa Azoty ZAK
129
940
521
114
911
548
8%
59%
33%
7%
58%
35%
534
1 842
908
586
1 865
843
16%
56%
28%
18%
57%
26%
167
1 156
972
231
1 142
1 022
7%
50%
42%
10%
48%
43%
887
5 183
3 165
1 010
5 186
3 138
10%
56%
34%
11%
56%
34%
Grupa Azoty Police
Total for the Group
114
EMPLOYEES
G4-LA12
TOTAL NUMBER OF EMPLOYEES BY WORKFORCE STRUCTURE
Grupa Azoty S.A.
Grupa Azoty ZAK
Grupa Azoty Police
2012
2013
2012
2013
2012
2013
5
7
4
4
3
3
Senior
executives
23
23
45
42
26
Managing
officers
135
135
80
82
Specialists
208
218
235
Senior staff
255
251
Supervisors
126
Operators
2012
2013
Management
Board
4
2
27
Top-level
management
99
101
102
106
Middle-level
management
137
139
242
400
415
Low-level
management
268
269
114
116
12
10
Specialists
560
575
126
98
92
139
142
Production
staff
2032
2027
726
719
720
707
925
1006
Administration
staff
185
182
Laboratory
staff
178
196
127
132
191
208
Other bluecollar jobs
410
397
167
156
497
478
Management
Board
115
EMPLOYEES
TOTAL NUMBER OF EMPLOYEES BY EMPLOYMENT CONTRACT, EMPLOYMENT FORM AND SEX
G4-LA1
2012
2013
Women
Men
Women
Men
Full-time
608
1 457
625
1445
Part-time
1
0
1
1
587
1 390
602
1362
22
67
24
84
609
1 457
626
1 446
Full-time
459
1 123
469
1 098
Part-time
4
4
4
2
451
1 094
448
1 072
Grupa Azoty S.A.
Open ended
Fixed term
Total
Grupa Azoty ZAK
Open ended
Fixed term
12
33
25
28
463
1 127
473
1 100
Full-time
787
2 493
788
2 504
Part-time
1
3
1
2
750
2 273
747
2 330
38
223
42
176
788
2 496
789
2 506
Full-time
528
1767
554
1841
Part-time
0
0
0
0
525
1 749
522
1 706
Total
Open ended
Fixed term
Total
Grupa Azoty Police
Open ended
Fixed term
3
18
32
135
528
1 767
554
1 841
Full-time
2 382
6 840
2 436
6 888
Part-time
6
7
6
5
2 313
6 506
2 319
6 470
75
341
123
423
2 388
6 847
2 442
6 893
Total
Total for the Group
Open ended
Fixed term
Total
116
Pr acow n i c y
EMPLOYEE TURNOVER BY AGE GROUP
G4-LA1
2012
2013
<30
30–50
>50
<30
30–50
>50
22
15
4
25
35
10
53.66%
36.6%
9.8%
35.7%
50.0%
14.3%
Grupa Azoty S.A.
New hires by age group
Percentage of new hires by age group
Total number of terminations by age group
Percentage of terminations by age group
Turnover by age group
1
8
27
1
10
51
2.8%
22.2%
75.0%
1.6%
16.1%
82.3%
1.1%
1.1%
1.5%
1.3%
2.2%
2.9%
Grupa Azoty ZAK
21
14
12
14
17
6
44.7%
29.8%
25.5%
37.8%
45.9%
16.2%
5
15
22
2
21
31
11.9%
35.7%
52.4%
3.7%
38.9%
57.4%
1.6%
1.8%
2.1%
1.0%
2.4%
2.4%
70
38
1
54
47
3
64.2%
34.9%
0.9%
51.9%
45.2%
2.9%
20
11
68
6
11
70
20.2%
11.1%
68.7%
6.9%
12.6%
80.5%
2.7%
1.5%
2.1%
1.8%
1.8%
2.2%
Grupa Azoty Police
3
1
0
120
61
6
75.00%
25.00%
0.00%
64.17%
32.62%
3.21%
26
83
93
8
18
61
12.9%
41.1%
46.0%
9.2%
20.7%
70.1%
1.3%
3.7%
4.1%
5.3%
3.3%
2.8%
117
EMPLOYEES
TOTAL AND AVERAGE NUMBER OF TRAINING HOURS BY SEX
G4-LA9
2012
2013
Women
Men
Women
Men
Total number of training hours by sex
17 383
25 127
13 758
29 883
Average number of training hours by sex
28.54
17.25
21.98
20.67
5 032
6 528
4 824
8 384
10.87
5.79
10.20
7.62
16 476
44 614
16 904
41 388
20.91
17.87
21.42
16.52
7 738
37 424
15 967
34 396
14.66
21.18
28.82
18.68
30 153.00
69 079.00
34 549.00
72 663.00
12.63
10.09
14.15
10.54
Grupa Azoty S.A.
Grupa Azoty ZAK
Grupa Azoty Police
Total for the Group
G4-LA9
TOTAL NUMBER OF TRAINING HOURS BY WORKFORCE STRUCTURE
Grupa Azoty S.A.
Grupa Azoty ZAK
Grupa Azoty Police
2012
2013
2012
2013
2012
2013
32
0
104
128
0
48
372
408
608
1 440
4 352
Managing
officers
8 394
12 019
1 808
2 736
Specialists
13 120
14 789
2 584
Senior staff
9468
5720
1440
Management
Board
Senior
executives
2012
2013
Management
Board
688
320
4 745
Top-level
management
11 114
10 223
5 624
5 342
Middle-level
management
7 178
6 008
2 248
5 342
18 931
Low-level
management
8 487
6 355
1024
256
630
Specialists
19 428
19 870
Production
staff
14 543
13 713
1 492
1 803
Supervisors
6 324
5 048
696
1 872
2 744
4 733
Operators
3 896
4 377
3 216
2 480
25 268
14 863
Laboratory
staff
0
48
736
560
1576
1039
904
1 232
368
720
0
0
118
Administration
staff
EMPLOYEES
COMPOSITION OF SUPERVISORY BODIES BY SEX
G4-LA9
2012
2013
Women
Men
Women
Men
Composition of the Supervisory Board by sex
2
7
2
7
Structure of the Supervisory Board by sex (%)
22%
78%
22%
78%
0
5
0
5
0%
100%
0%
100%
2
4
0
6
33%
67%
0%
100%
1
5
1
5
17%
83%
17%
83%
Grupa Azoty S.A.
Grupa Azoty ZAK
Grupa Azoty Police
G4-LA9
AVERAGE NUMBER OF TRAINING HOURS BY WORKFORCE STRUCTURE
Grupa Azoty S.A.
Grupa Azoty
Police
Grupa Azoty ZAK
2012
2013
2012
2013
2012
2013
6,4
0,0
26,0
32,0
0,0
16,0
Senior
executives
16,2
17,7
13,5
34,3
1 450,7
Managing
officers
62,2
89,0
22,6
33,4
Specialists
63,1
67,8
11,0
Senior staff
37,1
22,8
12,6
Management
Board
Supervisors
2012
2013
Management
Board
172,0
160,0
1 581,7
Top-level
management
112,3
101,2
1 874,7
1 780,7
Middle-level
management
52,4
43,2
9,3
1 780,7
6 310,3
Low-level
management
31,7
23,6
8,8
85,3
210,0
Specialists
34,7
34,6
Production
staff
7,2
6,8
Administration
staff
8,1
9,9
50,2
40,1
7,1
20,4
914,7
1 577,7
Operators
5,4
6,1
4,5
3,5
8 422,7
4 954,3
Laboratory
staff
0,0
0,2
5,8
4,2
525,3
346,3
2,2
3,1
2,2
4,6
0,0
0,0
119
EMPLOYEES
G4-LA12
COMPOSITION OF SUPERVISORY BODIES BY AGE GROUP
2012
By age group
2013
<30
30–50
>50
<30
30–50
>50
Composition of the Supervisory Board by age group
0
6
3
0
6
3
Structure of the Supervisory Board by age group (%)
0%
67%
33%
0%
67%
33%
0
2
3
0
3
2
0%
40%
60%
0%
60%
40%
0
2
4
0
3
3
0%
33%
67%
0%
50%
50%
Grupa Azoty S.A.
Grupa Azoty ZAK
Grupa Azoty Police
0
3
3
0
4
2
0%
50%
50%
0%
67%
33%
120
121
122
COMMUNITIES AND SOCIETY
EC DMA7-8
SO DMA1-2
G4-SO1
G4-EC7
G4-EC8
G4-26
LOCAL COMMUNITIES
The Grupa Azoty Group aims
to establish strong ties with all
its stakeholders, particularly
local communities. The keystone
of mutual trust is open dialogue,
which allows the Group
companies to identify the best
ways to support their local
communities and immediate
environment.
The Grupa Azoty Group
engages in local initiatives to
foster its communities and help
solve problems faced by local
residents.
In 2013, the Group received
the following main awards
in recognition of its support
for local communities:
marzec
Grupa Azoty S.A. was named
’Ambassador of Tarnów’, a title
awarded annually to the city’s best
representative on the international
arena (an individual or institution).
An Honorary Diploma of the Józef
Dietl Award granted to Grupa
Azoty S.A. by the Józef Dietl
Self-Government Corporation
in recognition of the Company’s
achievements, work for the local
communities and contribution to
regional development.
Until the end of 2013, Grupa Azoty
S.A. had in place ’The Azoty Tarnów
Group’s Strategy of Support for Local
Community in 2011–2013’. In 2013, as the
Grupa Azoty Group had been joined
by new companies, new corporate
documents were drawn up:
■■
’Grupa Azoty Group’s policy on
social and sponsorship activities
and its operation at the Group’,
■■
’Grupa Azoty Group’s
donation policy’,
■■
’Grupa Azoty Group’s
scholarship policy’.
Although integration is the source
of its strength, the Group is also
strongly convinced of the need to
preserve the individual character
of each of its companies and their
local communities.
The communities, which have
supplied the Group with successive
generations of employees, are its
cornerstone. This is a management
philosophy which perceives the
future through tradition, and looks to
expand into global markets from firm
local roots. The Grupa Azoty Group
does not intend or is able to cut off
its roots. The local character and
corporate citizenship of the Group
companies are invaluable assets,
forming an integral part of the Grupa
Azoty brand.
Its openness to dialogue makes for a
unique organisational culture. Since
2013, more and more activities have
been carried out at the corporate
level, many of them by individual
companies, which are closest to
their local communities and best
understand their needs.
This approach is reflected in social
involvement, principally at the local
level, which includes agreements
with locally-based organisations
active in the fields of culture, sports
or education. Companies of the
Group support various events in their
123
respective regions. Also, they often
provide direct support to schools
in their communities. They run
scholarship programmes for talented
young people, hoping they will join
the Grupa Azoty Group and apply
their knowledge towards growing
the Group’s business.
Higher education institutions,
particularly those technologyfocused, can also count on our
support, as can research institutions
whose work contributes to the
chemical industry’s development.
Our partnership with universities
involves joint research projects,
work placements, internships and
workshops (e.g. in chemistry and
materials science).
It is a well thought-out,
comprehensive approach, promoting
initiatives in various areas and on
various levels of the chemical sector.
Firstly, we support our small and
medium-sized business partners;
secondly, we look to fill staffing gaps
by helping educate future technical
and engineering staff, and thirdly,
we collaborate with researchers
who shape the future of the Polish
chemical industry.
This comprehensive approach
is also manifest in special economic
zones and industrial parks, which
are established thanks to constructive
dialogue and partnership with local
governments. The Grupa Azoty Group
sees this partnership as a commitment
to pursue joint initiatives
(e.g. construction and modernisation
of local infrastructure), mutual
business promotion, support of
culture, local sports events, higher
education, and academic sports
associations, as well as efforts
to improve the safety and living
standards of local residents.
Local communities
Activities in this area involve specific
investments, benefiting the local
community, businesses and the
Group itself. The purpose of special
economic zones and industrial parks
is to make it easier for entrepreneurs
and businesses to operate
in industrial and post-industrial areas.
The Group companies often supply
heat generated by their CHP
plants to nearby housing estates,
while in turn receiving municipal
wastewater for treatment. Grupa
Azoty Police and Grupa Azoty
Puławy (whose on-site CHP plant
supplies heat for the entire town)
are good examples of this symbiotic
relationship. What should also be
noted is that our companies have
often been instrumental in the
construction of local hospitals,
cultural centres or sports facilities.
Industrial parks contain facilities
with dedicated sections for use
by individual entrepreneurs,
which significantly facilitates their
operations. Start-up businesses gain
access to well-situated land with all
necessary utilities and good transport
logistics, while those already
established on the market have more
leeway, not having to contain their
impact strictly within their own plots
of land. The Grupa Azoty Group
is a partner to economic zones and
industrial parks in Tarnów (Special
Industrial Park), Puławy (Starachowice
Special Economic Zone – Puławy
Subzone and Puławy Industrial
Park) and Kędzierzyn-Koźle (Special
Demographic Zone). Yet another
of the Group’s many initiatives
is the Chemical Technology and
Development Centre in Tarnów.
Also important in the context of our
positive community impact are
local residents we employ and their
families, as well as those employed
by contractors working for the Group
companies. These are thousands
of people whose welfare directly
depends on the success of the Grupa
Azoty Group, not only as a source
of remuneration, but also extensive
packages of fringe benefits offered
to the Group’s employees and often
also to their families. Such packages
may include funding of children’s
trips and summer camps, co-financing
of holidays and education, and
employee loans. Social benefits
are also available to our retired
employees (for more information,
see ’Employment and additional
benefits’).
All large industrial plants, such
as those of the Grupa Azoty Group’s
companies, are inextricably linked
with their local communities, so
much so that they often share some
infrastructural facilities.
124
The Grupa Azoty Group is continually
seeking to mitigate its negative
environmental impact by investing
in the latest technologies to reduce
noxious emissions into the
atmosphere, improve the quality
of wastewater and reduce noise
pollution (to find out more, see
’Environmental impact’).
The monitoring carried out in 2013
revealed no significant breaches
of any requirements laid down in 
the relevant integrated permits (for
more information, see ’Compliance’).
In a systemic effort to mitigate the
consequences of potential industrial
accidents, the Group companies
develop and implement programmes
to prevent major accidents and
engage in safety reporting.
The individual companies have
in-house rescue plans setting out
procedures to be followed should
an industrial accident occur.
The Group companies have in place
appropriate organisational and
technical safety measures, such
as CCTV systems, safeguards, and
procedures for prevention and
mitigation of industrial accidents.
They maintain well-trained fire
services capable of leading effective
rescue operations, with additional
support from chemical rescue
teams and other services.
Local institutions are provided with
special procedures to be followed
in the event of an industrial accident.
The Grupa Azoty Group’s in-house
rescue teams participate in the
System of Assistance in Hazardous
G4-26
The impact of large industrial
facilities may also be onerous or even
dangerous to the local environment
and residents.
G4-SO1
SO DMA1-2 G4-SO2
Safe neighbourhood
Materials Transport (SPOT), and are
ready to provide assistance in the
event of accidents involving transport
of hazardous materials, irrespective
of whether such materials are
transported to the Group or to other
parties (for more information, see
’Customer safety’).
The Grupa Azoty Group
maintains regular contact with
local communities, keeping them
informed of its day-to-day operations
and safety matters. This is achieved
by means of various channels, such
as bulletins, dedicated programmes
and interviews in local radio stations,
articles published in local press, and
electronic media.
The Mościce 2020 Forum
of Organisations – a unique
platform for community
dialogue
A good example of our dialogue with
local communities is the Mościce
2020 Forum of Organisations, held
regularly as part of an outreach
programme for the community of
Mościce, a district of Tarnów dating
back to 1927, when the factory now
belonging to Grupa Azoty S.A. was
erected.
The Forum has been initiated,
organised and coordinated by
Grupa Azoty S.A. and Stowarzyszenie
KANON with the purpose of
integrating the Mościce community,
establishing a platform for exchanging
opinions and ideas on the future of
Mościce and its residents, as well as
encouraging people and institutions
to contribute to the district’s
development.
125
Always interested in how
it is perceived by society, and
particularly by local communities,
in 2013 the Grupa Azoty Group
commissioned a corporate image
survey from an independent
opinion polling institute. The survey
consisted of in-depth interviews
with Grupa Azoty’s key stakeholders,
a nationwide omnibus survey, CAPI
interviews with opinion leaders,
and a survey of opinions in the four
provinces in which Grupa Azoty plants
are located (CAPI interviews with 100
respondents from each province).
SO DMA1-2,
G4-SO1
SPORTS SPONSORSHIP AND PATRONAGE
The Grupa Azoty Group has strong
ties with the communities where its
plants are located. At the same time,
it is a global player with ambitions
to establish its presence across all
continents. It also sponsors athletes
in Poland and abroad, because
– breaking down barriers itself – it wants
to help others do the same.
The Grupa Azoty Group knows that
sustained, long-term promotion and
advertising through sports can bring
positive and lasting effects, both
financially and in terms of corporate
image. Advertising effectiveness
studies have shown that companies
which engage extensively in sports
marketing obtain a solid advertising
value equivalent. As part of its sports
marketing activities, the Grupa Azoty
Group supports athletes in their
training and helps them achieve new
successes, while at the same time
benefiting from this modern and
effective form of brand advertising
and promotion. Thanks to the efforts
of the Group companies, many
local sports clubs have won national
acclaim. It is often in such clubs that
athletes later representing Poland
in international competition start their
careers.
G4-EC1
G4-EC7
In 2013, we supported the following
sports clubs and associations:
■■
Polish Ski Federation
(winter sports),
■■
ZAKSA Kędzierzyn-Koźle
(men’s volleyball),
■■
PSPS Chemik Police
(women’s volleyball),
■■
MKS Pogoń Szczecin
(football),
Funding (PLN)
CSR activities for local
communities and donations
■■
ŻSSA Unia Tarnów
(speedway),
■■
AZS Koszalin
(basketball),
■■
KS Wisła Puławy
(multi-disclipline club),
■■
KS Azoty Puławy (handball).
World Cup in Wisła and Zakopane,
the finals of the Individual Speedway
Polish Championship and Individual
Speedway Junior Polish Championship,
the Visegrád Bicycle Rally, and the ICE
Speedway in Sanok.
SIn 2013, the Grupa Azoty Group
sponsored the following sportsmen
and sportswomen (whom it continues
to support): Robert Kubica (rally racing),
Piotr Żyła (ski jumping), Edyta Ropek
(sport climbing), Klaudia Buczek (sport
climbing), and Bartłomiej Mróz
(para-badminton). Until December
2013, the Group also sponsored two
motorcycle speedway riders from the
Unia Tarnów club – Janusz Kołodziej
and Maciej Janowski. The Grupa Azoty
Group also supports Marek Cieślak,
manager of the Unia Tarnów club and
of Poland’s national speedway team.
The Group also participates in various
professional and amateur sports
initiatives at the local level. It actively
supports many sports clubs and
institutions of great importance to
the regions where the Group’s core
companies are located. These include:
■■ Stowarzyszenie Piłki Ręcznej Tarnów
(handball),
■■ ZKS KS Unia Tarnów
(football),
■■ UKS Jedynka Tarnów
(women’s volleyball),
■■ Ludowy Klub Jeździecki Lewada
(horse riding sports).
According to experts, the new
Grupa Azoty brand created through
consolidation has become one of the
most visible brands in Polish sports,
particularly in such disciplines as ski
jumping, volleyball and motorcycle
speedway. Consolidation and synergies
have more than just a business
dimension, as demonstrated by the fact
that Grupa Azoty is widely recognisable
as a sports sponsor.
It is interesting to note that,
according to the same experts, the
sports sponsored by the Group are
among Polish favourites, surpassed
only by football, which − in business
terms – means that the Group’s brand
enjoys significant media publicity.
Ski jumping, volleyball and speedway
are, respectively, the 2nd, 3rd and 5th
most popular sports in terms of media
coverage.
Sports marketing surveys
commissioned by the Grupa Azoty
Group from specialist research centres
have shown that the Group provides
support, either directly or indirectly,
to some of Poland’s most popular
sports personalities, including Robert
Kubica, Piotr Żyła, Kamil Stoch and
Justyna Kowalczyk.
The Grupa Azoty Group has also
supported numerous nation-wide
and local sporting events. Last year,
the Group sponsored the Ski Jumping
Grupa Azoty S.A.
Grupa Azoty ZAK
Grupa Azoty Puławy
Grupa Azoty Police
1 736 843 PLN
769 032 PLN
1 194 902 PLN
800 900 PLN
126
127
Success evokes emotion.
Sport evokes emotion.
This is why we want
the image of Grupa Azoty
to be associated with
the faces of Polish athletes
– with their strength,
ambition and youth.
We understand winners,
since we ourselves
have achieved
so much. And we
understand those
just arriving in line
to win.
128
129
The Group’s activities are thus
systematically reviewed for
conformity with the relevant
standards in quality, environmental
protection, occupational health
and safety, and food safety. The
results of those compliance checks
are presented during management
system reviews in the presence
of senior executive staff, and
analysed to design appropriate
remedial measures and fine-tune
the management systems.
G4-SO8 G4-SO6
As the industry leader and a wellknown brand both in Poland and
Europe, the Grupa Azoty Group is 
aware of the importance of people’s
respect. It also realises that even
a relatively minor incident can easily
erode public trust.
SO DMA8
SO DMA8
COMPLIANCE
The Grupa Azoty Group companies
take care to ensure compliance
with legal requirements and other
standards, including standards of
ethics. Key importance is attached not
only to remedial measures, but also to
prevention. No significant fines or nonmonetary sanctions were imposed on
any of the four Group companies due
to their non-compliance with law, or
due to anti-competitive or corruptive
practices, and none of them provided
financial support to any political
parties.
130
131
132
4
Financial information
133
Today we compare
ourselves and compete
with the world's largest
market players. Operating
globally means following
global norms – this is why
we use the highest
international standards
in our reporting.
We take numbers
seriously.
134
s u mmary con s ol i d ate d fi n a n ci a l state m e n ts fo r 20 1 3
EC DMA1-4 G4-EC1
BASIS OF PREPARATION OF
THE summary CONSOLIDATED FINANCIAL STATEMENTS
The financial results presented in this
Report are consistent, and should
be read in conjunction, with the
results presented in the publicly
available financial statements for 2013,
including in particular the explanatory
notes which are an integral part of
the annual consolidated financial
statements. The Group’s financial
results presented here (unlike its
performance in other areas, including
the social or environmental aspects)
reflect not only the performance of
the four key companies, but of all
entities included in the consolidated
financial statements of the Grupa
Azoty Group. The figures for 2012
do not include Grupa Azoty Puławy’s
data.
The summary consolidated financial
statements presented in this Report
are only a summary of the information
presented in the consolidated
financial statements of the Grupa
Azoty Group, as approved by
the Grupa Azoty Management
Board on March 12th 201415 . It is not
a complete version of the Group’s
financial statements and does not
include information sufficient to
fully understand its assets, financial
standing and financial performance.
The summary consolidated
financial statements should be read
in conjunction with the audited
consolidated financial statements
prepared in accordance with the
International Financial Reporting
Standards as adopted by the
European Union (’IFRS EU’) and other
applicable laws.
The summary consolidated
financial statements were prepared
in accordance with the accounting
policies described in Note 2 to the
of the Group.
15 The consolidated financial statements for the 12
months ended December 31st 2013 prepared in
accordance with International Financial Reporting
Standards as endorsed by the European Union
are available at http://tarnow.grupaazoty.com/pl/
relacje/raportyr.
135
s u mmary CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF PROFIT AND LOSS
AND OTHER COMPREHENSIVE INCOME
For the period
Jan 1 – Dec 31 2013
7 098 735
9 821 023
(6 107 680)
(8 436 709)
Gross profit
991 055
1 384 314
Selling and distribution expenses
(181 916)
(447 750)
Administrative expenses
(390 733)
(706 391)
Other income, including:
49 024
601 010
G4-EC1
For the period
Jan 1 – Dec 31 2012
Continuing operations
Revenue
Cost of sales
-
515 438
Other expenses
Gain on a bargain purchase
(95 698)
(128 558)
Results from operating activities
371 732
702 625
42 741
73 761
Finance income
(38 672)
(56 225)
Net finance income
Finance costs
4 069
17 536
Share of profit of equity-accounted investees
8 549
12 361
Profit before tax
384 350
732 522
Tax expense
(69 049)
(18 443)
315 301
714 079
Net profit from continuing operations
136
s u mmary con s ol i d ate d fi n a n ci a l state m e n ts fo r 20 1 3
CONSOLIDATED STATEMENT OF PROFIT AND LOSS
AND OTHER COMPREHENSIVE INCOME
For the period
Jan 1 – Dec 31 2013
-
(554)
315 301
713 525
Remeasurements of defined benefit liability
-
(4 032)
Tax on items that will never be reclassified to profit or loss
-
678
-
(3 354)
423
-
1 594
-
Net change in fair value of available-for-sale financial assets
45 952
(15 751)
Net change in fair value of available-for-sale financial assets
reclassified to profit or loss
-
(27 256)
(6 750)
(8 344)
(9 114)
8 239
32 105
(43 112)
32 105
(46 466)
347 406
667 059
294 376
679 593
20 925
33 932
Equity holders of the Parent Company
326 481
635 743
Non-controlling interests
20 925
31 316
Basic (PLN)
4,59
6,95
Diluted (PLN)
4,59
6,95
G4-EC1
For the period
Jan 1 – Dec 31 2012
Discontinued operations
Net loss from discontinued operations
Profit for the year
Other comprehensive income
Items that will never be reclassified to profit or loss
Items that are or may be reclassified to profit or loss
Effective portion of changes in fair value of cash flow hedges
Net change in fair value of cash flow hedges reclassified to profit or loss
Foreign currency translation differences − foreign operations
Tax on items that are or may be reclassified to profit or loss
Other comprehensive income
Total profit or loss and other comprehensive income
Profit attributable to:
Equity holders of the Parent Company
Total comprehensive income attributable to:
Earnings per share:
137
G4-EC1
Consolidated statement of financial position
As at Dec 31 2012*
restated
As at Dec 31 2013
2 845 691
5 791 013
Assets
Non-current assets
Property, plant and equipment
Investment property
Intangible assets
Goodwill
Investments in subordinated entities
Available-for-sale financial assets
Other financial assets
Non-current receivables
Deferred tax assets
Other non-current assets
28 903
53 374
182 847
516 099
9 124
11 617
80 132
128 944
283 202
23 989
565
53
4 890
3 408
113 366
102 621
3 932
4 462
3 552 652
6 635 580
839 561
1 170 626
19 079
106 822
4 141
40 558
Trade and other receivables
677 927
1 273 112
Cash and cash equivalents
243 440
713 024
19 894
21 016
Assets held for sale
347
792
Total current assets
1 804 389
3 325 950
Total assets
5 357 041
9 961 530
Total non-current assets
Current assets
Inventories
Other financial assets
Current tax assets
Other current assets
138
G4-EC1
Consolidated statement of financial position
As at Dec 31 2012*
restated
As at Dec 31 2013
320 577
495 977
680 688
2 418 270
Equity
Share capital
Share premium
Fair value reserve
37 221
2 346
Translation reserve
(1 279)
(9 623)
2 039 413
2 654 487
294 376
679 593
3 076 620
5 561 457
414 078
709 194
3 490 698
6 270 651
289 979
634 693
139 756
254 613
928
61 821
118 622
119 343
19 996
24 906
12
-
131 800
294 728
17 632
22 513
Total non-current liabilities
718 725
1 412 617
Loans
200 017
604 140
14 155
34 008
19 227
4 903
Trade and other payables
697 317
1 313 547
Provisions
134 437
213 839
16 989
2 936
687
25 921
Retained earnings, including:
Profit for the year
Equity attributable to owners of the Parent Company
Total equity
Liabilities
Loans
Employee benefits
Other non-current payables
Provisions
Government grants
Deferred income
Deferred tax liabilities
Other financial liabilities
Employee benefits
Current tax liabilities
Government grants
Deferred income
Other financial liabilities
64 789
78 968
1 147 618
2 278 262
Total liabilities
1 866 343
3 690 879
Total equity and liabilities
5 357 041
9 961 530
Total current liabilities
* Financial information restated with respect to CO2 emission rights, as described in point 2.3 of the notes to the consolidated financial statements
for the 12 months ended December 31st 2013, prepared in accordance with International Financial Reporting Standards as adopted by the European
Union, pp. 26−28 (http://tarnow.grupaazoty.com/pl/relacje/raportyr).
139
CONSOLIDATED STATEMENT OF CASH FLOWS
For the period
Jan 1 – Dec 31 2013
Profit before tax
384 350
732 522
Adjustments for:
284 073
69 419
Depreciation and amortisation
239 592
550 166
G4-EC1
For the period
Jan 1 – Dec 31 2012*
restated
Cash flows from operating activities
Impairment losses
35 562
49 568
(Profit)/loss from investing activities
26 058
(545 568)
Profit on disposal of financial assets
(5 501)
(12)
Share of profit of equity-accounted investees
(8 549)
(12 361)
Interest, foreign exchange gains or losses
Dividends
Change in fair value of financial assets at fair value through profit or loss
Cash generated from operating activities before changes in working capital
Change in trade and other receivables
Change in inventories
Change in trade and other payables
Change in provisions, prepayments and grants
Other adjustments
11 423
38 443
(18 352)
(1 251)
3 840
(9 566)
668 423
801 941
87 136
(42 953)
(90 439)
187 893
(129 684)
95 942
57 887
78 815
(437)
(8 176)
Cash generated from operating activities
592 886
1 113 462
Income taxes paid
(49 106)
(122 965)
Net cash from operating activities
543 780
990 497
13 329
15 627
(397 294)
(680 878)
8 000
28 067
Cash flows from investing activities
Proceeds from sale of property, plant and equipment, intangible assets and
investment property
Acquisition of property, plant and equipment, intangible assets and investment
property
Dividends received
Acquisition of financial assets
Acquisition of subsidiaries, net of cash acquired
Proceeds from sale of financial assets
Cash acquired, net of consideration transferred in acquisition of subsidiaries
(224 688)
(128 499)
-
(230 956)
12 269
43 787
-
273 797
Interest received
1 999
816
Grants received
2 907
497
Loans
(1 190)
(525)
(11 480)
(10 271)
(596 148)
(688 538)
Other proceeds/disbursements
Net cash used in investing activities
140
G4-EC1
CONSOLIDATED STATEMENT OF CASH FLOWS
Cash flows from financing activities
Disbursements from issue of share capital
-
(11 159)
Dividends paid
(8 884)
(170 813)
Proceeds from loans and borrowings
565 777
1 020 372
-
(311 316)
Acquisition of non-controlling interests
Payment of loans and borrowings
(460 099)
(324 710)
Interest paid
(28 717)
(40 470)
Payment of finance lease liabilities
(12 563)
(12 623)
(9 544)
20 170
Other proceeds/disbursements
Net cash from financing activities
45 970
169 451
Net increase/(decrease) in cash and cash equivalents
(6 398)
471 412
Cash and cash equivalents at beginning of the period
244 791
243 440
5 047
(1 828)
243 440
713 024
Effect of exchange rate fluctuations on cash held
Cash and cash equivalents at end of the period
* Financial information restated with respect to CO2 emission rights, as described in point 2.3 of the notes to the consolidated financial statements for the 12 months ended
December 31st 2013, prepared in accordance with International Financial Reporting Standards as adopted by the European Union, pp. 26−28 (http://tarnow.grupaazoty.com/
pl/relacje/raportyr).
G4-EC4
In order to gain a full picture of the relations of the four key companies with society, in addition to data derived directly from
the financial statements it is important to highlight the substantial financial support they received from the state in various
forms over the last year.
[PLNm]
Government grants
Grupa Azoty S.A.
Grupa Azoty ZAK
Grupa Azoty Puławy
Grupa Azoty Police
1,179
1,782
4,338
0,886
Tax incentives related to
operation within a special
economic zone
-
-
24,393
0
Borrowings on preferential
terms
-
-
-
99,173
141
SEGMENT RESULTS
Sales of the Grupa Azoty Group’s
products in 2013 were driven
primarily by the market situation
in the Agro Fertilizers, Plastics and
Chemicals segments. The largest
year-on-year increase in revenue
was recorded in the Energy (66.3%),
Chemicals (59.6%) and Agro
Fertilizers (33.9%) segments.
The smallest increase in revenue
(29.9%) was recorded in the Plastics
segment. Shares of the individual
segments in overall revenue remained
relatively unchanged compared with
2012.
REVENUE BY SEGMENTs
PRZYCHODY ZE SPRZEDAŻY WEDŁUG SEGMENTÓW OPERACYJNYCH
6 000 000
5 000 000
4 000 000
2012
3 000 000
2013
2 000 000
1 000 000
Agro Fertilizers
Plastics
Chemicals
Energy
Other
Activities
Źródło: Sprawozdanie Zarządu z działalności Grupy Azoty za okres 12 miesięcy kończących się 31 grudnia 2013 r.”, str. 67 (http://tarnow.grupaazoty.com/pl/relacje/raportyr).
142
SEGMENT RESULTS
These results translated directly into each segment’s profitability. The Agro Fertilizers segment’s profit on sales was a source
of financing for the other segments’ growth.
External revenue
Share [%]
Net profit on sales
Share [%]
EBIT
Share [%]
Agro Fertilizers
Plastics
Chemicals
Energy
Other
Activities
5 565 074
1 466 548
2 385 331
265 516
138 554
56,7
14,9
24,3
2,7
1,4
391 785
(110 530)
(14 372)
(4 608)
(32 102)
170,2
(48,0)
(6,3)
(2,0)
(13,9)
424 980
(156 115)
(7 432)
(3 366)
(70 880)
227,0
(83,3)
(4,0)
(1,8)
(37,9)
* EBIT: operating profit/(loss) presented in the statement of profit and loss and other comprehensive income, adjusted for gain on bargain purchase.
143
144
INDEPENDENT AUDITORS’ REPORT ON
THE SUMMARY CONSOLIDATED FINANCIAL STATEMENT s
Management’s
Responsibility for the
Summary Consolidated
Financial Statements
This document is a free translation
of the Polish original. Terminology
current in Anglo-Saxon countries has
been used where practicable for the
purposes of this translation in order
to aid understanding. The binding
Polish original should be referred to
in matters of interpretation.
Management of the Parent Entity
is responsible for the preparation of
the summary consolidated financial
statements on the basis described
in Note “Basis of preparation of the
summary consolidated financial
statements”.
To the General Meeting
of Grupa Azoty S.A.
The accompanying summary
consolidated financial statements,
which comprise the summary
consolidated statement of financial
position as at 31 December
2013, the summary consolidated
statement of profit or loss and other
comprehensive income and the
summary consolidated statement of
cash flows for the year then ended,
and related notes, are derived from
the audited consolidated financial
statements of the Group, whose
parent entity is Grupa Azoty S.A.
with its registered office in Tarnów,
ul. Kwiatkowskiego 8 (“the Group”)
for the year ended 31 December
2013. We expressed an unmodified
audit opinion on those consolidated
financial statements in our report
dated 12 March 2014. Those
consolidated financial statements, and
the summary consolidated financial
statements, do not reflect the effects
of events that occurred subsequent to
that date.
Auditor’s Responsibility
Our responsibility is to express an
opinion on the summary consolidated
financial statements based on our
procedures, which were conducted
in accordance with national standards
on auditing issued by the Polish
National Council of Certified Auditors
and International Standards on Auditing
(ISA) 810, Engagements to Report on
Summary Financial Statements.
Opinion
In our opinion, the summary
derived from the audited consolidated
financial statements of the Group for
the year ended 31 December 2013 are
consistent, in all material respects, with
those consolidated financial statements,
on the basis described in Note “Basis
of preparation of the summary
consolidated financial statements”.
The summary consolidated financial
statements do not contain all the
disclosures required by International
Financial Reporting Standards, as
adopted by the European Union
and other applicable regulations.
Reading the summary consolidated
financial statements, therefore, is not
a substitute for reading the audited
consolidated financial statements of
the Group.
On behalf of KPMG Audyt Sp. z o.o.
Registration No. 458
ul. Chłodna 51
00-867 Warsaw
July 11th 2014
Marcin Domagała
Key Certified Auditor
Registration No. 90046
Director
145
146
About the report
147
148
G4-17
G4-6
G4-5
This Report is the first
integrated report of the
Grupa Azoty Group, covering
the four largest Group
companies and presenting both
their financial performance
and their economic, social
and environmental impacts16.
The release of this integrated
Report is accompanied by
the publication of regional
supplements, discussing
the activities of the four
largest companies of the
Grupa Azoty Group.
G4-3
G4-29
ABOUT THE REPORT
16 The financial information includes the figures of a
greater number of entities, presented in the same
manner as in the consolidated financial statements.
G4-18
G4-28
G4-30
G4-33
■■
Grupa Azoty S.A. of Tarnów
(Parent),
■■
Puławy S.A. of Puławy
(Grupa Azoty Puławy),
■■
Kędzierzyn S.A.
of Kędzierzyn-Koźle,
■■
Grupa Azoty Zakłady Chemiczne
Police of Police
(Grupa Azoty Police)..
These are the largest Group companies
in terms of revenue and headcount
(they generate more than 98% of the
Grupa Azoty Group’s revenue). Given
the scale and nature of their business,
the companies also have the greatest
impact on the social and natural
environment18.
Report profile
This Report has been drawn up in
accordance with the ’core’ option
of the latest GRI G4 Guidelines, in
line with the GRI recommendation
for organisations reporting for the
first time in accordance with the
Guidelines. This Report is an annual
report for the financial year 2013,
which corresponds with the calendar
year. In order to exercise utmost
care, we have engaged a third-party
expert to assist in the preparation
of this Report, and this Report has
been verified by an independent
auditor (Deloitte Advisory Sp. z o.o.).
Financial data sourced from financial
statements has been additionally
audited by independent auditors
(KPMG Audyt Sp. z o.o.).
Out of the total number of several
dozen companies comprising the
Grupa Azoty Group17, this Report
covers the four key companies, i.e.:
In order to define the scope of CSR
reporting, an Expert Committee for
CSR was appointed, which included
employees responsible for different
areas of the Group’s business. The
efforts of the working groups were
additionally supported by external
experts. To determine aspects
which are relevant to the corporate
social responsibility of the Group,
an analysis of the CSR reporting of the
leading global chemical groups was
undertaken. The materiality of the
reporting aspects with respect to
17 The full list of companies making up the Grupa
Azoty Group and included in the consolidated
financial statements can be found at http://tarnow.
grupaazoty.com/pl/relacje/raportyr.
18 Apart from the abovementioned companies, the
consolidated financial statements also include the
financial data of five other companies (subsidiaries
of Grupa Azoty): Grupa Azoty ATT Polymers
GmbH (Guben, Germany), Grupa Azoty Polskie
Konsorcjum Chemiczne Sp. z o.o. (Tarnów), Grupa
Azoty KOLTAR Sp. z o.o. (Tarnów), Grupa Azoty
Kopalnie i Zakłady Chemiczne Siarki Siarkopol
S.A. (Grzybów), and Navitrans Sp. z o.o. (Gdynia,
an indirectly controlled subsidiary). Moreover,
the above subsidiaries have a total of 23 their own
subsidiaries.
149
the specific sector requirements
was determined also based
on an analysis of the requirements
of the ’Odpowiedzialność i Troska’®
(Responsible Care) programme.
In addition, to ensure that the results
of the Expert Committee’s work are
credible, the analysis also took account
of the local market conditions in which
the Group operates. To this end, apart
from the meetings of the working
Committee, individual meetings were
also held at the plants in Tarnów,
Puławy, Police and Kędzierzyn-Koźle.
By identifying the existing challenges
and the expectations towards the
individual Group plants in their
operating environment, we were
able to propose a scope of the report
which not only ensures compliance
with the principles of materiality and
completeness, but also reflects the
stakeholders’ expectations and the
context of sustainable development.
Based on those analyses, aspects
of low, medium and high relevance
were identified. The aspects of low
relevance, which provide no
measurable added value for the
organisation and the addressees of
this Report, were disregarded.
The other indicators were discussed
during a series of meetings held at the
four key Group companies. Once
the indicator definitions have been
discussed with the persons responsible
for the individual business areas
at the Group companies, a process
of collecting data and verifying its
relevance to the Group was developed.
Considering the need to ensure the
highest quality of information, i.e.
compliance with the requirements
of the GRI Guidelines as to information
balance, comparability, accuracy,
timeliness, clarity and reliability,
a software application dedicated
to GRI reporting was created.
Approximately 70 persons from the
various functional areas of the four key
Group companies were involved in the
process of collecting data.
Ultimately, this Report includes
the CSR aspects listed below.
Given the horizontal strategic
integration of the Group, the
impact areas of the Group’s four
key entities are practically the same.
G4-19
G4-20
G4-21
ABOUT THE REPORT
RELEVANCE OF INDIVIDUAL CSR ASPECTS
TO THE GRUPA AZOTY GROUP
High relevance:
■■
■■
■■
■■
■■
■■
■■
■■
■■
■■
■■
■■
■■
■■
■■
■■
■■
Occupational Health and Safety
Biodiversity
Environmental protection
Emissions
Energy
Materials
Product and Service Labelling
Products and Services
Non-discrimination
Anti-corruption
Local Communities
Effluents and Waste
Transport
Water
Economic Performance
Employment
Customer Health and Safety
Compliance
Medium relevance:
■■
■■
■■
■■
■■
■■
■■
■■
Training and Education
Marketing Communications
Market Presence
Indirect Economic Impacts
Diversity and Equal Opportunity
Freedom of Association and Collective Bargaining
Public Policy
Compliance (compliance with laws and regulations
concerning the provision and use of products and services)
150
G4-26
G-24
The Grupa Azoty Group has in place
a formal register of stakeholders,
which additionally defines the
method of assessing the materiality
and the ability of the individual
stakeholders to affect the Group’s
operations.
G4-25
We cannot discuss material aspects
and corporate social responsibility
as such without identifying the
specific groups of stakeholders.
G4-27
ABOUT THE REPORT
Stakeholders can be divided into
the following groups:
■■
Employees
■■
Customers
■■
Local communities
■■
Research and development
institutions
■■
Suppliers
■■
Shareholders
■■
Public institutions
■■
Trade unions
■■
Local government authorities
■■
State Treasury
■■
Banks and financial institutions.
The form and frequency of dialogue
depends on the characteristics of a
given group and the expectations
and problems material to both
parties. At the present moment,
such solutions as stakeholder panels
are not yet an effective tool in
Poland, one of the reasons being the
business environment’s limited trust
in dialogue as such. Therefore, the
dialogue relied for the most part on
more traditional tools (e.g. qualitative
and quantitative market research,
meetings, workshops). The persons
responsible for maintaining dialogue
with the environment are the heads
of the individual functional areas
at the Group companies, who also
have up-to-date knowledge of the
expectations of each stakeholder
group.
Therefore, at the stage of defining
the scope of this Report, it was
important to hold meetings directly
at the companies and to engage
in the process of collecting data
several dozen people who have
the knowledge of their individual
areas of responsibility, including of
the expectations and any potential
concerns of the environment. Thanks
to this, the CSR aspects identified
as material are those which are
addressed most often in stakeholders’
inquiries.
151
G4-32
GRI Co n t en t I n d e x
Indicator
Name
Note
Audit p. 157
Page
General Standard Disclosures
Strategy and Analysis
G4-1
Statement from the most senior decision-maker of the organization (such as CEO,
chair, or equivalent senior position) about the relevance of sustainability to the
organisation and the organisation’s strategy for addressing sustainability

3
G4-2
Description of key impacts, risks, and opportunities.

3, 32
Organizational Profile
G4-3
Name of the organization

11, 149, 160
G4-4
Primary brands, products, and services

9, 46
G4-5
Location of the organisation’s headquarters

11, 149, 160
G4-6
Number of countries where the organisation operates, and names of countries
where either the organisation has significant operations or that are specifically
relevant to the sustainability topics covered in the report

11, 44, 149
G4-7
Nature of ownership and legal form

31
G4-8
Markets served (including geographic breakdown, sectors served, and types of
customers and beneficiaries)

46
G4-9
Scale of the organisation

31
G4-10
Total number of employees by employment contract and gender

108
G4-11
Percentage of total employees covered by collective bargaining agreements

108
G4-12
Organisation’s supply chain

9, 44, 65, 79
G4-13
Significant changes during the reporting period regarding the organisation’s size,
structure, ownership, or its supply chain

27
G4-14
Whether and how the precautionary approach or principle is addressed by the organisation

73
G4-15
Externally developed economic, environmental and social charters, principles, or
other initiatives to which the organisation subscribes or which it endorses

35, 36
G4-16
Memberships of associations (such as industry associations) and national or
international advocacy organisations

28
Identified Material Aspects and Boundaries
G4-17
Entities included in the organisation’s consolidated financial statements

11, 149
G4-18
Process for defining the report content

149
G4-19
Identified Material Aspects regarding environmental and social impacts

150
G4-20
Materiality of identified environmental and social impacts for individual entities

150
G4-21
Report limitations regarding impacts of material environmental and social
aspects, including at entities outside of the organisation
No material
limitations

150
G4-22
Effect of any restatements of information provided in previous reports, and the
reasons for such restatements (e.g. mergers or acquisitions, change of base years
or periods, nature of business, measurement methods)
Organization’s
first report

–
G4-23
Significant changes from previous reporting periods in the scope and
measurement methods
Organization’s
first report

–
Stakeholder Engagement
G4-24
List of stakeholder groups engaged by the organisation

151
G4-25
Basis for identification and selection of stakeholders with whom to engage

151
G4-26
Organisation’s approach to stakeholder engagement, including frequency of
engagement by type and by stakeholder group

57, 63, 65,
123, 125, 151
G4-27
Key topics and concerns that have been raised through stakeholder engagement,
and how the organisation has responded to those key topics and concerns,
including through its reporting

151
152
G RI Co n t en t I n d e x
Report Profile

149

149

149
Contact point

160
G4-32
CSR index

153
G4-33
Organisation’s policy and current practice with regard to seeking external assurance
for the report. If not included in the assurance report accompanying the sustainability
report, reporting on the scope and basis of any external assurance provided, as well
as the relationship between the organisation and the assurance providers.

149
Governance structure of the organisation, including committees under
the highest governance body responsible for specific tasks, such as setting
strategy or organisational oversight

34, 35

32, 37
G4-28
Reporting period (such as fiscal or calendar year)
G4-29
Date of most recent previous report (if any)
G4-30
Reporting cycle (such as annual, biennial)
G4-31
01.01.2013-31.12.2013
annual
Governance
G4-34
Ethics and Integrity
G4-56
Organisation’s values, principles, standards and norms of behavior
such as codes of conduct and codes of ethics
Specific Standard Disclosures
CATEGORY: ECONOMIC
Aspect: Economic Performance
DMA
Management approach

135
G4-EC1
Direct economic value generated and distributed, including revenues, operating
costs, employee compensation, donations and other community investments,
retained earnings, and payments to capital providers and governments

126, 135, 136,
137, 138, 139,
140, 141
G4-EC2
Financial implications and other risks and opportunities for the organisation’s
activities due to climate change

91
G4-EC4
Significant financial assistance received from government

141
Aspect: Market Presence
DMA
Management approach

113
G4-EC5
Ratios of standard entry level wage by gender compared to local minimum
wage at significant locations of operation

113
Aspect: Indirect Economic Impacts
DMA
Management approach

123
G4-EC7
Development and impact of infrastructure investments and services provided
primarily for public benefit through commercial, inkind, or pro bono engagement

107, 123, 126,
G4-EC8
Identification and description of significant indirect economic impacts, including
the extent of impacts

107, 123

79

80,81
CATEGORY: ENVIRONMENTAL
Aspect: Materials
DMA
Management approach.
G4-EN1
Materials used by weight or volume
Partially reported
Aspect: Energy
DMA

82
G4-EN3
Direct and indirect energy consumption within the organisation

82, 84, 85
G4-EN5
Energy intensity

82
G4-EN6
Reduction of energy consumption

57
Partially reported
153
Aspect: Water
DMA

86
G4-EN8
Total water abstraction by source

86, 88
G4-EN10
Percentage and total volume of water recycled and reused

86
Aspect: Biodiversity
DMA

90
G4-EN11
Location and size of land owned, leased, managed in, or adjacent to, protected
areas and areas of high biodiversity value outside protected areas

90
G4-EN12
Description of significant impacts of activities, products, and services on
biodiversity in protected areas and areas of high biodiversity value outside
protected areas

90
Aspect: Emissions
DMA

91
G4-EN15
Total direct greenhouse gas emissions by weight

91, 95
G4-EN18
Greenhouse gas (GHG) emissions intensity

93
G4-EN19
Reduction of greenhouse gas (GHG) emissions

57, 93
G4-EN21
NOX, SOX, and other significant air emissions by type and weight

94
Aspect: Effluents and Waste
DMA

87
G4-EN22
Total water discharge by quality and destination

87, 89
G4-EN23
Total weight of waste by type and disposal method

96, 99

57, 102

57, 102

98
Aspekt: Produkty i usługi
DMA
G4-EN27
Extent of impact mitigation of environmental impacts of products and services
G4-EN28
Percentage of products sold and their packaging materials that are reclaimed by
category
Partially reported
Aspect: Compliance
DMA

103
G4-EN29
Monetary value of significant fines and total number of non-monetary
sanctions for non-compliance with environmental laws and regulations

103
Aspect: Transport
DMA

74, 100
G4-EN30
Significant environmental impacts of transporting products and other goods
and materials for the organisation’s operations, and transporting members
of the workforce

74, 100
CATEGORY: SOCIAL
Labor practices and decent work
Aspect: Employment
DMA

107
G4-LA1
Total number and rates of new employee hires and employee turnover by age
group, gender and region

116, 117
G4-LA2
Benefits provided to full-time employees that are not provided to temporary or
part-time employees, by significant locations of operation

107
154
Aspect: Occupational Health and Safety
DMA

68
G4-LA5
Percentage of total workforce represented in formal joint management–worker
health and safety committees that help monitor and advise on occupational
health and safety programs

68
G4-LA6
Type of injury and rates of injury, occupational diseases, lost days, and absenteeism,
and total number of work-related fatalities, by region and by gender

69
G4-LA7
Workers with high incidence or high risk of diseases related to their occupation

68
G4-LA8
Health and safety topics covered in formal agreements with trade unions

68
Aspect: Training and Education
DMA

111, 112
G4-LA9
Average hours of training per year per employee by gender,
and by employee category

111, 118, 119
G4-LA10
Programs for skills management and lifelong learning that support the continued
employability of employees and assist them in managing career endings

109
G4-LA11
Percentage of employees receiving regular performance and career development
reviews, by gender and by employee category

112
Aspect: Diversity and Equal Opportunity
DMA

107
G4-LA12
Composition of governance bodies and breakdown of employees per employee
category according to gender, age group, minority group membership, and other
indicators of diversity

108, 115, 120
Human Rights
Aspect: Non-discrimination
DMA

113
G4-HR3
Total number of incidents of discrimination and corrective actions taken

113
Society
Aspect: Local Communities
DMA

123-126
G4-SO1
Percentage of operations with implemented local community engagement,
impact assessments, and development programs

123-126
G4-SO2
Operations with significant actual and potential negative impacts on local
communities

125
Aspect: Anti-corruption
DMA

37
G4-SO5
Confirmed incidents of corruption and actions taken

37
Aspect: Public Policy
DMA
Podjeście zarządcze.

130
G4-SO6
Total value of financial and in-kind political contributions to parties,
politicians and similar institutions by country

130
Aspect: Compliance
DMA

130
G4-SO8
Monetary value of significant fines and total number of non-monetary sanctions
for non-compliance with laws and regulations

130
155
Product responsibility
Aspect: Customer Health and Safety
DMA

63, 73
G4-PR1
Percentage of significant product and service categories for which health and
safety impacts are assessed for improvement

63, 73
G4-PR2
Total number of incidents of non-compliance with regulations and voluntary codes
concerning the health and safety impacts of products and services during their life
cycle, by type of outcomes

74
Aspect: Product and Service Labelling
DMA

65, 75
G4-PR3
Type of product and service information required by the organisation’s
procedures for product and service information and labelling, and percentage
of significant product and service categories subject to such information
requirements

75
G4-PR4
concerning product and service information and labelling, by type of outcomes

75
G4-PR5
Results of surveys measuring customer satisfaction

65
Aspect: Marketing Communications
DMA

65
G4-PR7
concerning marketing communications, including advertising, promotion, and
sponsorship, by type of outcomes

65
Aspect: Compliance
DMA

75
G4-PR9
Monetary value of significant fines for non-compliance with laws and regulations
concerning the provision and use of products and services

75
156
Independent a ssur ance report pertaining to the non - financial part
of the Grupa A zot y Integr ated Report 2013
We have reviewed the non-financial
part of the Grupa Azoty Integrated
Report 2013 (“Integrated Annual
Report”) developed by Grupa Azoty
S.A. with the registered address
in Tarnów, at ul. Kwiatkowskiego 8
(“Company”), with respect to material
aspects identified by the Company
and indicators reported on the
basis of G4 Sustainability Reporting
Guidelines for “Core” level, issued by
Global Reporting Initiative (GRI). The
assurance works covered the period
from 1 January 2013 to 31 December
2013 with relation to quantity and
quality of available evidence.
The Management Board of the
Company is responsible for reliable,
correct and fair information and
for correct preparation of the
documentation. Our task was to issue
an independent assurance report
based on the Integrated Annual
Report.
Our procedures did not include
assessment of the fairness,
correctness and completeness
of documents provided by the
Company, nor did they constitute an
audit of the internal control system
implemented therein. Therefore, we
do not express an opinion regarding
correctness of the system. Our
procedures did not constitute an audit
of financial statements as defined in
the Accounting Act. Therefore, we do
not express an opinion concerning
the auditor’s Report nor do we make
statements regarding the financial
statements of the Company as
determined in regulations applicable
to certified auditors.
Planning and performing our works
had the nature of a limited assurance
engagement performed in line with
ISAE 3000 (Assurance Engagements
Other than Audits or Reviews of
Historical Financial Information),
which requires us to plan and perform
the engagement in a manner which
allows for limited assurance that the
non-financial part of the Integrated
Annual Report does not include
significant misstatements. The scope
and methodology of a review of the
Integrated Annual Report significantly
differ from those applied during an
audit, which is aimed at expressing
reasonable assurance. The purpose of
the review is not to issue an opinion
on correct, true and fair nature of
the Integrated Annual Report, and
therefore no such opinion has been
issued. The procedures followed
during the review of the non-financial
part of the Integrated Annual Report
comprised:
■■
Identifying issues and results
significant for the content of the
Integrated Annual Report from the
viewpoint of the corporate social
responsibility strategy followed
by the Company and stakeholders'
expectations.
■■
Comparing data included in the
non-financial part of the Integrated
Annual Report to those presented
in the Financial Statements of Grupa
Azoty for 2013.
■■
Interviewing individuals in charge of
the implementation of the corporate
social responsibility strategy in the
Company and of the preparation of
the Integrated Annual Report.
■■
Verifying the information included
in the Integrated Annual Report
for compliance with the internal
documentation of the Company.
■■
Assessing the level of compliance
with Sustainable Development
Reporting Guidelines and GRI
Reporting Framework.
Based on the review we obtained
limited assurance that the information
concerning identified material aspects
and indicators reported by the
Company included in the Integrated
Annual Report developed by the
Grupa Azoty S.A. is free from material
misstatements and it is compliant
with G4 Sustainability Reporting
Guidelines for ‘Core’ level issued
by Global Reporting Initiative.
Deloitte Advisory Sp. z o.o.
Warsaw, July 10th 2014
157
tab l e of co n t en t s
3 Let ter from the President of the Management Board
7 Introduction
9
Group’s profile
10
Group structure
27
Group’s expansion
31
Scale of the organisation and ownership structure
32
Business strategy and sustainable development
34
Management model and core values
35
Integrated Management Systems
35
Risk management
35
Internal audit
36
Corporate governance
37
Ethical values and principles in the organisation’s management
39 Responsible partner in business
41
Market overview
42
Fertilizer market
42
Plastics
43
Chemicals
43
Power sector
44
Supply chain
46
Market presence
49
Agro Fertilizers
51
Plastics
52
Chemicals
55
Energy
55
Other Activities
57
Innovation and development
60
Grupa Azoty S.A.
60
Grupa Azoty Puławy
61
61
Grupa Azoty Police
63
63
Customer relations
Sustainable development in agriculture
65
Fostering good relations
67
Safety
68
Health & safety
158
tab l e of co n t en t s
73
Product safety
74
Transport safety
75
Customer safety
76
Environmental impact
79
Feedstocks
82
Energy
86
Water management
90
Biodiversity
91
Air emissions
93
OTHER AIR EMISSIONS
96
Waste management
100
Transport
102
Environmental protection projects
103
Compliance
105 Responsible employer and community member
107
Employees
107
Employment and additional benefits
111
Staff development and training
112
Employee reviews
113
Non-discrimination
123
Communities and society
123
Local communities
125
Safe neighbourhood
126
Sports sponsorship and patronage
130
Compliance
133 financial statements
135
Condensed consolidated financial statements for 2013
142
Segment results
145
OINDEPENDENT AUDITOR’S OPINION ON THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
149 About the report
152
GRI Content Index
157
Independent assurance report pertaining to the non-financial part
of the Grupa Azoty Integrated Report 2013
159
Grupa Azoty S.A.
ul. Kwiatkowskiego 8
33-101 Tarnów, Poland
NIP: 873-000-68-29
Ticker GPW: ATT
KRS: 0000075450
ISIN: PLZATRM00012
tel. +48 14 637 35 31
[email protected]
Grupa Azoty Police
ul. Kuźnicka 1, 72-010 Police, Poland
NIP: 851-02-05-573
Ticker GPW: PCE
KRS: 0000015501
ISIN: PLZCPLC00036
tel. +48 91 317 17 17
[email protected]
Grupa Azoty Puławy
Al. Tysiąclecia Państwa Polskiego 13
24-110 Puławy, Poland
NIP: 716-000-18-22
Ticker GPW: ZAP
KRS: 0000011737
ISIN: PLZAPUL00057
tel. +48 81 565 37 15
ul. Mostowa 30 A, skr. poczt. 163
47-220 Kędzierzyn-Koźle, Poland
NIP: 749-00-05-094
KRS: 0000008993
tel. +48 77 481 26 35
[email protected]
G4-31
Report written and compiled by the Corporate Public Relations Office
Please send comments and queries to: [email protected]
To obtain additional information on the report
or our CSR activities, please contact:
Magdalena Ciepiela | [email protected]
Grupa Azoty S.A. | ul. Kwiatkowskiego 8 | 33-101 Tarnów, Poland
designed and published by © grupa tomami | www.tomami.pl
grupaazoty.com

gRupa azoTy inTegRaTed RepoRT | 2013 gR u pa a zo T y in T eg

Transcription

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